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

Bitcoin price climbed above $87,000 on Monday as a broad crypto rally forced bearish leveraged positions out of the market. The recovery was buoyed by improved risk sentiment as Donald Trump’s administration proposed a $5 billion Gulf reconstruction to repair infrastructure damaged during the Iran war.

At press time, Bitcoin had gained about 7% over 24 hours and reached its highest level since January. Falling oil prices, lower Treasury yields, and renewed ETF demand also supported risk assets during the session.

Trump Proposes $5 Billion Gulf Energy Reconstruction Fund

The rally came as the Trump administration proposed a $5 billion investment in a new Middle East energy fund. The Wall Street Journal said the plan would support infrastructure damaged during the seven-month Iran war.

The proposal would seek matching contributions from Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan. It would also support routes designed to reduce reliance on the Strait of Hormuz.

The proposed fund would focus on damaged energy infrastructure and alternative oil and gas transport routes. Energy markets remain important for risk assets because oil prices can affect inflation expectations and Treasury yields. Monday’s Bitcoin rally also coincided with lower oil prices and softer bond yields.