Bitcoin, Ether, XRP rebound after Senate limits Trump’s Iran war

The crypto market recovered on Tuesday after the U.S. Senate voted 50‑to‑47 to restrict former President Donald Trump’s authority to launch military action against Iran, a move that lowered Treasury yields and oil prices and helped lift Bitcoin, Ether and XRP [2]. The rebound follows a sharp sell‑off earlier in the week triggered by fresh U.S. airstrikes on Iran that had pushed Bitcoin below $73,000 and the broader market down more than 3 % [1].

Key takeaways

• Bitcoin rose to about $77,337, up 0.7 % in 24 hours after the Senate vote [2].
• Ether gained 0.7 % to $2,130, while XRP slipped slightly to $1.37, down 0.3 % [2].
• The earlier market drop was driven by Iran strikes, higher oil prices and $1 billion of liquidations, with spot Bitcoin ETFs losing $733 million in a single day [1].
• Institutional inflows into spot Bitcoin ETFs had been a key support, but outflows and thin liquidity amplified the fall [1].
• Analysts note that Bitcoin’s near‑term support sits around $75,000, with resistance near $80,000‑$82,000 [2].

Senate action eases geopolitical risk, lifts crypto prices

The Senate’s decision to curb Trump’s Iran war powers came after weeks of heightened tension following U.S. airstrikes near the Strait of Hormuz. Those strikes had driven oil above $107 a barrel, stoking inflation concerns and prompting a flight to safety that hit risk assets, including cryptocurrencies [1]. By limiting the president’s ability to order further strikes, the vote helped calm markets, allowing Treasury yields and oil prices to retreat and giving crypto a chance to rebound.

Simon‑Peter Massabni of XS.com highlighted that the rebound was also supported by “solid inflows into spot Bitcoin exchange‑traded funds (ETFs) and renewed institutional participation,” even as the broader market remained cautious [2]. He pointed out that Bitcoin’s price still sits below the recent high of $82,000, with technical support near $75,000 and resistance at $80,000‑$82,000, suggesting that further upside will depend on both market sentiment and continued institutional buying.

Why it matters

The episode underscores how closely crypto prices track geopolitical developments and traditional financial flows. The earlier crash showed that even a hedge‑like asset can behave as a risk‑on instrument when oil prices surge and institutional money withdraws [1]. Conversely, the Senate’s curbing of war powers demonstrated that political decisions can quickly restore confidence, prompting modest gains across major cryptocurrencies [2]. Going forward, Bitcoin’s trajectory will likely hinge on whether the geopolitical tension eases, whether ETF inflows stabilize, and whether price breaks above the $80,000‑$82,000 resistance level.