TLDR
- Bitcoin fell to a five-week low of $74,250 on Saturday before recovering
- Trump announced a peace deal with Iran was “largely negotiated”
- The deal includes reopening the Strait of Hormuz, which had weighed on risk assets
- Crypto markets recovered around $75 billion in total market cap on the news
- BTC remains down 39% from its October peak and is still in a downtrend
Bitcoin dropped sharply on Saturday, hitting a five-week low of $74,250 on Coinbase before bouncing back after a major geopolitical announcement from US President Donald Trump.
Trump posted on his Truth Social platform that a peace agreement with Iran had been “largely negotiated.” The deal involves the United States, Iran, and several Middle Eastern countries including Saudi Arabia, the UAE, Qatar, Pakistan, Turkey, Egypt, Jordan, and Bahrain.
🚨 “An Agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries, as listed…” – President Donald J. Trump pic.twitter.com/Z49bOkkUoh
— The White House (@WhiteHouse) May 23, 2026
As part of the deal, Trump said the Strait of Hormuz would be reopened. The waterway had been closed since the conflict began in late February, putting pressure on global energy prices and weighing on risk assets like crypto.
“Final aspects and details of the deal are currently being discussed and will be announced shortly. In addition to many other elements of the agreement, the Strait of Hormuz will be opened,” Trump wrote.
Crypto markets responded quickly. Total market capitalization recovered around $75 billion following the news.
Bitcoin climbed back from its $74,250 low to tap the 50-day exponential moving average at $77,000 in early Sunday trading. At the time of writing, BTC was sitting at around $76,800.
ETF Flows Raised Red Flags Before the Drop
Crypto analyst Daan Crypto Trades flagged something worth noting ahead of the weekend selloff. Writing on X, he pointed out that Bitcoin saw well over $1 billion in spot ETF outflows during the week — and that price held up relatively well until Friday and Saturday.
$BTC Saw well over $1 Billion in spot ETF outflows this week which was absorbed pretty well until the sell off started Friday/Saturday.
Generally when flows go in one direction but price doesn’t follow, that’s a decent indication to start paying attention.
But in this case I’d… pic.twitter.com/z50aszTt0W
— Daan Crypto Trades (@DaanCrypto) May 23, 2026
“Generally when flows go in one direction but price doesn’t follow, that’s a decent indication to start paying attention,” he wrote. He added that he would want “some confirmation or sign of strength first as we’re obviously still in a larger down trend.”
That divergence between outflows and price stability may have been an early signal of what was coming.
Where BTC Stands Now
Despite the bounce, Bitcoin is still in a downtrend. It has failed to break resistance at $82,000 and remains down 39% from its October all-time high.
US Secretary of State Marco Rubio, speaking during a visit to India on Saturday, reiterated the conditions for the deal. “Iran can never have a nuclear weapon. The straits need to be open without tolls. They need to turn over their enriched uranium,” he said.
Crude oil prices dipped on the de-escalation hopes. WTI dropped to $96 and Brent Crude fell to $103, though both remain around 55% higher than pre-conflict levels.
The monthly BTC candle is currently red with one week left to close.
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