The crypto market is gearing up for a potential impact of the geopolitical tensions that are developing between the United States and Iran. This is coming as both countries are about to engage in talks regarding a deal before Trump’s deadline.
Crypto Market on Alert Ahead of U.S.- Iran Negotiations
According to Bloomberg, the US and Iran are due to have a third round of nuclear talks on Thursday, with just days left before President Donald Trump’s deadline for a deal.
The Iranian proposals will be handed over by Oman’s Foreign Minister Badr Albusaidi on Thursday. The previous round of negotiations between the US and Iran ended with both countries agreeing to draft the text of the agreement.
This was followed by modest gains in the crypto market during that time. But Iran said at the time that the next steps would not be easy.
“Iran will resume talks with the U.S. in Geneva with a determination to achieve a fair and equitable deal — in the shortest possible time,” Iran’s Foreign Minister Abbas Araghchi said.
The demands of the US for the agreement differ, with Trump stating that he will not allow Iran to develop a nuclear weapon. This comes despite the fact that the Iranian government claims it does not want one.
The priority of the Iranian government in the talks is the removal of sanctions that have crippled the economy. This has led to the currency crisis and street protests against the Islamic Republic in December.
Trump had given Iran a deadline of March 1-6 to make a deal. He then threatened a military strike if they do not comply. This has caused fear about a new war in the Middle East, which could affect the crypto market.
Hopes for Deal Weaken as Odds Fall to 30%
Traders are now beginning to have doubts about a deal being reached between the United States and Iran. According to data from Polymarket, the chances of a deal being reached in March have now fallen to 30%
A deal being reached is extremely important for the crypto market, as it is already down by billions of capital value from the previous highs seen last year. To give a background, the price crash of BTC continued earlier this year when the United States sent a warship to Iran.
At the same time, China is monitoring the developments that are taking place in the situation in Iran. There has been a traditional friendship between the people of China and Iran. They also reiterated their support for the Iranian government in their efforts to maintain stability in the country.
Source: https://coingape.com/crypto-market-on-edge-as-us-iran-hold-talks-ahead-of-trumps-war-deadline/