Bitcoin held above $80,000 this week as Middle East tensions shook markets, while two expected US Senate decisions gave traders fresh reasons to watch the rally. The move followed President Donald Trump’s rejection of Iran’s peace counteroffer and came as 10x Research CEO Markus Thielen pointed to key Senate events that could support Bitcoin’s strength.
Bitcoin briefly dropped on Sunday after Trump rejected Iran’s proposal to end the war. In a Truth Social post, Trump called the counteroffer “TOTALLY UNACCEPTABLE” after reviewing Iran’s terms. Iran had asked the United States to pay war reparations and unfreeze blocked Iranian financial assets. The rejection lowered hopes for a quick end to the conflict.
CoinGecko data showed Bitcoin falling from $81,430 to $80,520 within 45 minutes of Trump’s post. Yet the pullback faded fast, and BTC later climbed nearly 2.3% to $82,347 in less than three hours. That rebound triggered heavy losses for short sellers. CoinGlass data showed nearly $64 million in short positions wiped out over four hours as Bitcoin moved higher.
Meanwhile, the wider market also reacted to the latest geopolitical shift. Oil rose another 4.6% to $98.7 per barrel after Trump’s comments. The US-Iran war has disrupted financial markets for ten weeks. The Strait of Hormuz remains central to the dispute, as it handles one-fifth of global oil trade.
Despite the war pressure, Thielen said Bitcoin’s strength near $80,000 could gain support from two Senate events this week. He pointed to a Monday vote on Kevin Warsh’s confirmation as Federal Reserve chair. He also cited Thursday’s Senate Banking Committee markup on the CLARITY Act. Thielen described the bill as the most important crypto legislation in years.
Warsh has a reputation for taking a more hawkish view on inflation than current Fed Chair Jerome Powell. Still, Thielen said confirmation could remove uncertainty from markets. The CLARITY Act could also shape digital asset regulation in the United States. Thielen said the bill could mark a turning point for regulatory certainty across crypto markets.
Both developments may matter for institutional investors. Regulatory clarity could reduce friction, while a smoother Fed leadership change could ease policy uncertainty for risk assets.
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Bitcoin has gained 29.7% since the US-Iran conflict began on February 28. That date followed a US airstrike that killed Iran’s Supreme Leader Ayatollah Ali Khamenei. The asset has outperformed the S&P 500 and gold since the war started. It has also recovered part of the ground lost after reaching $126,080 in October.
CoinDesk data showed Bitcoin rose 11.8% last month, marking its strongest monthly gain since April 2025. It later extended the rally by nearly 6% to $80,700. Stocks have also moved higher. TradingView data showed the Nasdaq rising 22% since April 1 to a lifetime high of 23,235 points.
The S&P 500 also climbed more than 12% to 7,398 points. S&P 500 futures rose 0.13% after the market opened following Trump’s post. Yet consumer sentiment has moved in the opposite direction. The University of Michigan survey posted a preliminary record-low reading of 48.2 points on Friday.
That figure fell 7.7% from a year earlier and extended the decline from April’s reading of 49.8. The data showed weaker consumer confidence even as crypto and stocks advanced. Reports cited in the post show that about 30% of American adults, or 70.4 million people, own cryptocurrency. Since 2023, about 62% of adults have owned stocks on average.
Bitcoin held above $80,000 despite renewed US-Iran tensions and weaker consumer sentiment. Traders are now watching Senate decisions on Kevin Warsh and the CLARITY Act, which could shape Fed policy expectations and crypto regulation. The next key test is whether Bitcoin can sustain its strength.