• Iran re-imposes Strait of Hormuz controls after brief reopening.
  
• Bitcoin pulls back from $78K to $76K amidst renewed tensions.
  
• Oil prices surge as geopolitical risks return.
  

The Strait of Hormuz is closed again, but how will Bitcoin react this time? With oil prices spiking and tensions rising, will Bitcoin dip further or is Iran opening Hormuz anytime soon?

Why Iran’s Move to Take Back Strait of Hormuz Matters

Iran’s move to take back control over the Strait of Hormuz on April 18, 2026, stands in stark contrast to President Donald Trump’s assertion just a day before that the waterway would “never” close again. The U.S. military has been conducting a blockade of Iranian ports, which Iranian officials say led directly to the re-closure of this crucial shipping lane.

On April 17, Iran had announced that the Strait was fully open after a short ceasefire linked to the conflict in Lebanon. This news caused Bitcoin to skyrocket, surpassing the $77,000 mark for the first time since February. Yet, less than a day later, Iran backtracked, shutting the Strait once more and demanding that all ships seek Iranian permission to transit. This turn of events has injected new tension into the geopolitical scene, sending both oil and crypto markets into a frenzy.

Iran’s decision came amid the continued presence of U.S. forces enforcing their naval blockade in the area, escalating the ongoing conflict. Iranian officials accused Trump of misleading the public with unfounded statements, further intensifying the diplomatic crisis.

Market Impact of Strait of Hormuz Closure on Bitcoin

Bitcoin’s quick rise to $77,300 following Iran’s announcement about the reopening of the Strait didn’t last long. Once word got out about the Strait being closed again, the cryptocurrency pulled back to between $75,800 and $77,100, hinting that investors might be changing their minds. This situation shows just how much Bitcoin reacts to geopolitical tensions, even though it has held up better than traditional markets during crises.

The closure of the Strait of Hormuz affects Bitcoin indirectly, mainly by influencing global oil prices. After the Strait’s closure, Brent crude oil prices jumped back up to around $94-$96 a barrel, reversing the dip they had after the temporary reopening. This rise in oil prices can elevate inflation concerns, often leading to a risk-averse attitude in the markets, which tends to drag down prices across the board, including for Bitcoin.

Yet, Bitcoin’s fluctuations aren’t solely based on what’s happening with the Strait. As a key chokepoint for oil, its closure amplifies energy uncertainties, creating broader impacts on global markets. The drop in Bitcoin’s price after a significant climb underscores how responsive the cryptocurrency market is to political developments and overall market liquidity.

What to Watch Next as Geopolitical Risks Linger

The geopolitical situation surrounding the Strait of Hormuz remains fluid. With the ceasefire between the U.S. and Iran set to expire on April 22, the next few days could significantly impact Bitcoin’s price action. If the ceasefire is extended, or if positive diplomatic progress is made, risk-on sentiment could return, supporting Bitcoin’s attempt to hold above $77,000 and possibly drive it higher.

Alternatively, if tensions reignite or talks break down, Bitcoin could face additional downward pressure. Market participants will be watching closely for signs of escalation, as another geopolitical flare-up could trigger a broader market sell-off. The outcome of the next round of talks between U.S. and Iranian officials in Islamabad this weekend could offer some clarity.

Trader Insights on Bitcoin’s Price Action Amid Strait of Hormuz Tensions

Bitcoin’s recent price drop is largely driven by significant geopolitical changes. Traders who were optimistic about the reopening of the Strait are now faced with the reality of potential ongoing instability. With Bitcoin’s RSI sitting at 33.76, it indicates that the market might be oversold and could see a bounce back, especially if the immediate shock from the news settles and buyers come back into play. 

That said, the risk of more negative news looms large. If the situation escalates further, Bitcoin could slip to new support levels, possibly around $75,000. Seasoned traders are rethinking their strategies, keeping a close eye on oil prices, military developments, and liquidity trends. Bitcoin’s movement isn’t just about fundamental factors anymore; it’s closely linked to global geopolitical happenings.

ParadiseTeam is monitoring this situation closely, and we are taking these developments into consideration while building our trading tactics inside ParadiseFamilyVIP.

However, in Simon’s upcoming video tonight, he’ll provide an in-depth look at the likely price movements and offer a more thorough analysis of what to watch for in the days ahead. Don’t miss out on his insights, check out Simon’s latest video here.