Bitcoin Returns to $77,000. Trump’s Latest Statement to ‘Delay Strike on Iran,’ Crypto Market Sees Narrow Rebound

TradingKey - Trump postpones strikes on Iran as Bitcoin halts its decline to rebound to $77,000; focus this week on Warsh's inauguration.

On May 19, signs of a recovery emerged in the cryptocurrency market as Middle East tensions eased. Total market capitalization rose from yesterday's low of $2.53 trillion to $2.56 trillion, a rebound of over 1%. Meanwhile, the decline in major mainstream coins was halted, with some even turning positive; the privacy sector performed best.

In the past 24 hours, the largest privacy coin by market cap—Zcash ( ZEC) surged nearly 8% to break $570; Dash (DASH) and Humanity (H) both rose over 5%, Decred (DCR) gained nearly 3%, and Tezos (XTZ) climbed over 1%.

On May 18 local time, U.S. President Trump signaled a de-escalation, posting on social media that 'at the request of the leaders of Qatar, Saudi Arabia, and the UAE, he has ordered that military strikes against Iran will not proceed as originally planned.' Following the news, Bitcoin ( BTC) bottomed out near $76,000 before rebounding slightly to trade at $77,026. However, whether Bitcoin's price will pivot and break through the key support level of $75,000 will depend on the actions of both the U.S. and Iran.

Bitcoin price chart, source: TradingView

Iran appeared relatively composed regarding the U.S. strike postponement. Rezaei, a military advisor to the Supreme Leader, stated, 'The U.S. set a deadline for military strikes and then canceled it themselves! They are trying to force the Iranian people and government to submit with such false hope!' Furthermore, Iran remains prepared for war at any moment. Supreme Leader Mojtaba Khamenei reiterated the opening of new fronts, stating, 'If the state of war continues, Iran will open these new fronts.'

Based on the stances of both sides, the U.S. and Iran are waiting for the other to back down, resulting in a stalemate. This means that if either side makes a concession, the current situation could improve, making it less likely for Bitcoin to fall below $75,000. Conversely, if tensions escalate, it will be difficult for Bitcoin's price to hold that support level.

This Friday, Trump will hold an inauguration ceremony for Warsh, which provides some boost to bullish market sentiment but remains insufficient to overcome the pressure from the Middle East situation. This week, Bitcoin's price has seen some rebound but has mostly fluctuated within the $75,000-$80,000 range.