U.S.-Iran Peace Memo Spurs Bitcoin Rally, Altcoins Gain

On May 23, President Donald Trump wrote on Truth Social that a U.S.-Iran peace memorandum was “largely negotiated” and that the “Strait of Hormuz would be reopened.” He said he had spoken with leaders of Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Türkiye, Egypt, Jordan and Bahrain and had a separate call with Israeli Prime Minister Benjamin Netanyahu.

Markets reacted quickly. Bitcoin recovered from an intraday low below $75,000 to about $77,000, roughly 1.4% higher over 24 hours after the announcement.

Several altcoins outperformed Bitcoin. NEAR Protocol rose about 14.8% on the day and more than 60% over the prior seven days. Worldcoin gained about 8.7% for the day and over 26% for the week. Zcash increased about 8.8% on the day and nearly 28% for the week. Ondo, Morpho and Hyperliquid also posted gains in the high single digits.

Traders shifted into higher-risk assets as the perceived chance of a negotiated pause in hostilities increased. The price reversal followed several days in which geopolitical concerns had pressured markets.

Analysts and market participants noted the recovery depends on whether the memorandum becomes a finalized, enforceable agreement. Outstanding issues likely to shape sentiment include sanctions relief, the scope and oversight of Iran’s nuclear activities, guarantees against renewed attacks, and mechanisms to enforce the reopening and security of the Strait of Hormuz.

Reopening the strait would reduce a near-term risk to oil shipments, given the waterway’s role in global energy flows, and could lower risk premia across affected markets.

Market observers are watching for the memorandum’s text, timelines and third-party verification. Until details are formalized, prices may continue to fluctuate as investors reassess the agreement’s durability and scope.