Hassan Maishera
TL;DR
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BTC is trading below $71k after hitting the $73k level on Saturday.
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The bearish performance comes after President Trump ordered the blockade of the Strait of Hormuz following failed negotiations with Iran.
BTC Slips on Failed US-Iran Negotiation
The cryptocurrency market had a rollercoaster of a weekend as Bitcoin rallied on Saturday before dumping on Sunday.
The leading cryptocurrency by market cap is down by 1.3% in the last 24 hours and is now trading around $70,770 per coin.
The bearish performance comes after the United States negotiators failed to reach a peace agreement with Iranian officials.
While speaking to The Block, BTC Markets Crypto Analyst Rachael Lucas pointed out that geopolitical headlines dominated crypto markets today as U.S.-Iran peace talks in Islamabad collapsed after 21 hours, triggering a sharp risk-off move."
Despite 21 hours of negotiations in Islamabad, U.S. and Iranian officials failed to resolve the protracted war. U.S. Vice President JD Vance announced on Sunday that Iranian representatives were unwilling to accept U.S. terms. In contrast, Iran's state media said the talks collapsed due to "unreasonable demands" from the U.S.
Bitcoin’s recent rally was fueled by President Donald Trump's two-week ceasefire announcement. However, investors remained cautious as a full peace deal would likely require one party to make the difficult choice of softening its stance.
Following the failed negotiations, Trump announced on Sunday that he ordered the naval blockade of the Strait of Hormuz, in a move to pressure Iran, which has been blocking the critical oil chokepoint and charging tolls of up to $2 million per vessel.
Trump’s announcement risks further escalation of the conflict in the Middle East, resulting in Bitcoin losing more than 2% of its value within hours.
Lucas added that despite the short-term volatility, the underlying institutional picture remains constructive.
The analyst further pointed out that the spot bitcoin exchange-traded funds reported their strongest weekly inflows since February, with $786 million in inflows last week. While BlackRock's IBIT led positive flows, Morgan Stanley's newly launched MSBT attracted a notable $46 million in inflows by offering the lowest fees among the funds.
Bitcoin may likely retest the $73,000 resistance level over the next few hours despite the current market conditions. Sustained ETC inflows when the market opens in a few hours could push BTC’s price higher in the near term.
