2026-4-8 17:01 |
Bitcoin (BTC) remains below $70,000 on Tuesday as traders weigh conflicting signals from a dramatic Trump ultimatum on Iran against reports of positive ceasefire talks.
An 8 PM ET deadline set by President Trump for Iran to reopen the Strait of Hormuz has turned Tuesday into a binary event for risk assets.
War Signals Pull BTC in Both DirectionsVice President JD Vance said Tuesday that the war would conclude “very shortly” and that military objectives had been completed.
BREAKING: US Vice President JD Vance says 'very shortly, this war will conclude'.
— The Spectator Index (@spectatorindex) April 7, 2026Meanwhile, a senior U.S. official reportedly told Fox News that Washington is in direct contact with Tehran, describing the talks as “positive” with a possible breakthrough by the end of the day.
US-IRAN TALKS: “POSITIVE” SIGNALS EMERGE: FOX
A senior U.S. official says Washington is in direct contact with Iran, describing the talks as “positive” and suggesting a possible breakthrough could come as soon as today.
The comments signal cautious optimism, though major gaps…
However, Trump posted a starkly different tone on Truth Social. He warned that “a whole civilization will die tonight” while claiming “Complete and Total Regime Change” had occurred.
“A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will… We will find out tonight, one of the most important moments in the long and complex history of the World,” said Trump.
The post referenced 47 years since Iran’s 1979 Islamic Revolution.
Former White House Communications Director Anthony Scaramucci called the statement a veiled nuclear strike threat.
Wake up: he is calling for A NUCLEAR STRIKE. Seek his removal immediately.
— Anthony Scaramucci (@Scaramucci) April 7, 2026 Skeptics vs. Hawks Frame a Binary TradeNot everyone reads Trump’s rhetoric at face value. Macro commentator Rational Aussie argued that the escalating language signals weak leverage, not genuine intent.
They predicted Trump would extend the deadline overnight and markets would rally on the reversal, a pattern traders have labeled “TACO Tuesday” for “Trump Always Chickens Out.”
“Trump will Taco…his rhetoric gets increasingly deranged when the worst things are going for him – that’s how he negotiates. He has to make everyone believe he has genuinely lost the plot…He’s trying to create leverage that doesn’t exist by artificially creating what is most scarce: fear of consequence. I fully expect to wake up 8 hours from now to a headline something along the lines of ‘we were so close to giving the orders,” they wrote.
Meanwhile, Iran is not backing down quietly. A senior Iranian source reportedly said that if the situation spirals out of control, Tehran’s allies would close the Bab el-Mandeb waterway.
🚨🚨 SENIOR IRANIAN SOURCE TO REUTERS: IF THE SITUATION GETS OUT OF CONTROL, IRAN’S ALLIES WILL ALSO CLOSE BAB EL-MANDEB WATERWAY
— *Walter Bloomberg (@DeItaone) April 7, 2026That Red Sea chokepoint handles a significant share of Europe-bound shipping and is already vulnerable to Houthi disruption.
The Strait of Hormuz closure has already removed roughly 20% of global oil supply from the market, pushing Brent crude above $110 per barrel.
A simultaneous Bab el-Mandeb shutdown would compound that shock across energy, fertilizer, and shipping costs.
Bitcoin and Crude Oil Price Performances. Source: TradingView What Comes Next for BTCBitcoin opened Tuesday at $68,860, down 0.2% from Monday. It briefly touched $68,200 before recovering and was trading for $68,392 as of this writing.
The Fear and Greed Index remains deep in extreme fear territory, where it has stayed for over a month.
If the deadline passes without escalation, the “TACO” thesis holds, and a relief rally becomes likely. If strikes on civilian infrastructure proceed, further selling pressure and liquidation cascades could push BTC toward the $66,000 support zone tested last week.Traders have a few hours left to find out which version of tonight they get.
The post Trump’s Ultimatum Splits Markets Between Nuclear Fear and “TACO Tuesday” appeared first on BeInCrypto.
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