Bitcoin in Limbo as Iran Denies War De-Escalation Talks With the US

Esmail Baqaei, the spokesman of the Iranian Foreign Ministry, has denied that the country has held any talks with the US regarding a ceasefire. 

He added that Iran remains adamant on its conditions to end the war, including an Iran-led Strait of Hormuz governance,  US disarmament and closure of US military bases, damage compensation, a 100% guarantee of no future wars, and the end of hostility from US-aligned media.

Bitcoin consolidation following geopolitical uncertainty

Iranian officials have also confirmed that they have not responded to messages about negotiating with the US for a détente. These messages are said to have come from “friendly” countries such as Turkey, Oman and Egypt.

Differently, US President Donald Trump had signalled a defusion of the US-Iran crisis, citing “productive” talks with Iran. He also said the country would have joint control of the Strait of Hormuz, in addition to collaborating with “whoever the next Ayatollah is.”

News of the pause in hostilities saw the price of oil drop from just above $100/barrel to $89.43/barrel at writing time.

Source: TradingView

Meanwhile, Bitcoin (BTC) rebounded today from about $68,400 to $70,700 (+3.36%), while Ethereum (ETH) rose 2.64% to trade at $2,136 at press time.

Source: CoinMarketCap

What Next?

The latest development could lengthen the recent consolidation of the crypto market further, with volatility either way depending on upcoming developments.

Meanwhile, charts show a bottoming of Bitcoin at around 777 days post-halving. We are now 703 days post-halving, indicating a possible impending bear trend in roughly 2 months.

Upcoming events that could affect crypto this week include inflation insights, US unemployment claims and the Fed commentary on how energy costs will influence interest rates.

Even then, the permabull Bitcoin Treasury Strategy continues accumulating Bitcoin, with plans to purchase another half a million BTC following stock sales. The Bitcoin Exchange Whale Ratio is at 0.7, indicating whale accumulation but also a historical impending bottom.

Source: CryptoQuant