Bitcoin Price Hits $87,000 as Trump Proposes $5B to Rebuild Gulf Sites Hit by US-Iran War

GULF (MIDDLE EAST), STRAIT OF HORMUZ, 22 SEPTEMBER 2026 —

Bitcoin surged past $87,000 on Monday, its highest level since January, as a broad crypto rally forced bearish leveraged positions to liquidate and coincided with the Trump administration’s proposal of a $5 billion Gulf reconstruction fund aimed at repairing infrastructure damaged in the seven‑month Iran‑U.S. war.

The price advance, which represented roughly a 7 percent gain over the preceding 24 hours, was underpinned by a swing in risk sentiment. Falling oil prices, lower U.S. Treasury yields and renewed demand for spot Bitcoin exchange‑traded funds (ETFs) all contributed to the rally, according to market data cited by the source.

The Trump administration’s plan, reported by the Wall Street Journal, would establish a new Middle‑East energy fund with an initial $5 billion commitment. The fund is intended to support the reconstruction of energy infrastructure damaged during the Iran conflict and to develop alternative oil‑and‑gas transport routes that reduce reliance on the Strait of Hormuz. The proposal seeks matching contributions from Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan.

The crypto market’s reaction to the announcement was immediate. Approximately $919 million of short positions in Bitcoin were forced to close as the price broke through key resistance levels, with more than $557 million of that amount attributed to short liquidations during Monday’s advance. The liquidation of bearish bets added buying pressure, amplifying the upward move.

Spot Bitcoin ETF inflows also supported the price, while several crypto‑linked equities rose in tandem after the fund proposal was disclosed.

Despite the wave of liquidations, leverage in the Bitcoin derivatives market remained elevated. Glassnode reported that Bitcoin stayed above its “true market mean” and above the cost basis of short‑term holders, a condition the firm associates historically with stronger market regimes. Santiment noted that open interest in Bitcoin futures rose 7.6 percent to about $156 billion, indicating that fresh leverage was building and that market participation was becoming more crowded.

The firm said Bitcoin’s “FOMO” metric had reached its highest level since 2024.

Analyst Michaël van de Poppe identified the $90,000‑$91,000 band as the next price zone to watch, suggesting that stronger momentum could push Bitcoin toward $98,000‑$100,000. In line with that view, prediction‑market platform Polymarket showed a 42 percent probability that Bitcoin would hit $100,000 before the end of 2026.

The next phase, according to the source, depends on whether spot demand can sustain the price after the short squeeze and whether additional leverage is absorbed as traders position around the $90,000 level.

The rally’s broader market implications were highlighted by the link between energy prices and risk assets. Lower oil prices and softer bond yields, both cited as factors in the Bitcoin surge, can temper inflation expectations and influence Treasury yields, thereby affecting investor appetite for higher‑risk assets such as cryptocurrencies.

The proposed Gulf reconstruction fund, by targeting damaged energy infrastructure and alternative transport routes, could further shape global oil dynamics, which in turn may feed back into crypto market sentiment.

The source concluded that the Bitcoin breakout has shifted market focus toward the $90,000 area, with heightened leverage and open interest suggesting that volatility could intensify as the price approaches that psychological threshold. No further developments were reported beyond the current price action and the ongoing Gulf fund proposal.