Bitcoin broke above $79K on Wednesday morning as traders bet that a new round of US-Iran diplomacy could ease the geopolitical tensions that have battered markets for months.
The move pushed prices to levels not seen since early February, before the Middle East situation spiraled.
Peace talks over the Iran war are set to restart in Pakistan as soon as Friday, according to the New York Post, citing Donald Trump, who said Steve Witkoff will lead a new round of negotiations in Islamabad alongside Jared Kushner.
Iran, however, has pushed back, saying it will not participate due to disagreements over US demands and continued military measures.
The situation in the Strait of Hormuz continues to escalate, with recent US intervention against an Iranian tanker and reported Iranian attacks on ships. While Trump remains optimistic about securing a deal, he has also reiterated threats of military escalation if Iran refuses terms, as a temporary ceasefire nears its expiration.
The backdrop traces back to February, when US-Iran tensions escalated sharply. Military strikes and the closure of the Strait of Hormuz sent crude prices soaring and risk assets tumbling.
Bitcoin fell to around $60,000 as investors sought safety. The 32% recovery since those lows has been driven by a gradual thaw in diplomatic relations and the institutional money that follow.
A ceasefire in early April marked the turning point, with ETF inflows picking up as traditional finance players concluded the worst had passed.
Bitcoin’s recent rally reflects a bet that diplomacy holds. If talks stall or break down, the same institutional flows that drove prices higher could reverse fast.
Monetary policy is now an added wildcard, with inflation still running hot and oil prices unsettled after the Hormuz tensions, complicating how markets react to global developments.
Source: https://cryptobriefing.com/bitcoin-geopolitical-impact-trump-us-iran-talks/