President Donald Trump says China agreed to stop arming Iran. He tied the claim to efforts to permanently reopen the Strait of Hormuz.

The US is enforcing a naval blockade on Iranian ports. Bitwise analysts argue the crisis could expand Bitcoin’s (BTC) role in global finance.

Trump Declares China Partnership, Beijing Pushes Back

In a Truth Social post, Trump said he was “permanently opening” the Strait, predicting that President Xi Jinping “will give me a big, fat, hug” during an upcoming visit.

“China is very happy that I am permanently opening the Strait of Hormuz…They have agreed not to send weapons to Iran,” wrote Trump in the post.

The post came days after peace talks between VP JD Vance and Iranian officials collapsed in Islamabad. The US began a targeted blockade of Iranian ports around April 13.

Forces interdicted vessels and cleared mines near one of the world’s most critical oil routes.

The Strait handles roughly 20% to 30% of the global seaborne oil trade. Prolonged disruption threatens higher energy costs and supply chain risks worldwide. Shipping data shows traffic remains severely curtailed.

China’s Foreign Ministry offered a sharply different view. Spokesperson Guo Jiakun called the blockade “a dangerous and irresponsible move.”

He said it would “aggravate confrontation” and “undermine the already fragile ceasefire.”

Beijing denied US intelligence claims about weapons transfers to Iran. Officials called the allegations “groundless smears” and said China follows strict export controls.

No independent confirmation of a formal arms agreement has surfaced.

Bitwise Says Crisis Expands Bitcoin’s Addressable Market

The standoff has sharpened debate about BTC’s function beyond a store of value. Since US and Israeli airstrikes began on February 28, Bitcoin has gained 12%. The S&P 500 fell 1%, and gold dropped 10% over the same period.

Bitwise CIO Matt Hougan argued the outperformance stems directly from the conflict. He framed Bitcoin’s potential as a currency like an out-of-the-money call option that gained value as geopolitical volatility increased.

Iran’s decision to collect bitcoin tolls of roughly $1 per barrel from ships transiting the strait bolsters that thesis. The toll system could generate an estimated $21 million per day in crypto inflows. Hougan said the move points to a reality that “transcends the current conflict.”

“If Bitcoin starts to take on a dual role as both a store of value (like gold) and an actual currency (like the dollar), we may need to revise our targets higher,” wrote Hougan.

Bitwise head of research Ryan Rasmussen echoed that assessment. He said their internal price targets “are too low.” If BTC captures both roles, “$1 million per bitcoin begins to look like a starting point,” he added.

BTC traded for $73,894 as of this writing, holding gains from a recent rebound to its highest level since early February.

Whether the Strait fully reopens depends on fast-moving negotiations between Washington and Tehran.

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