#Gate广场四月发帖挑战 As of today (April 12), the US-Iran negotiations have officially been declared to have broken down, and both sides failed to reach any agreement. This has sent the Middle East situation back to a tense state of “fighting while negotiating,” and market concerns about the risk of war have quickly intensified.

Latest developments in the situation

Negotiations with no results: The talks in Islamabad, Pakistan, between the two sides ended without consensus. Due to the U.S. “asking too much” and the huge differences in their core demands, no agreement was reached. The timing and location of the next round of talks have not been determined.

No one gives an inch: U.S. Vice President Vance said he will return home with a “final proposal” and wait for a response. Iran, meanwhile, said it is in no rush to negotiate and emphasized that it has control of the Strait of Hormuz.

Ceasefire backdrop: The two sides actually reached a temporary ceasefire on April 8 lasting two weeks (until April 22). It was originally intended to create conditions for negotiations, but this diplomatic effort has now stalled.

Impact on cryptocurrencies

Shocked by this news, the cryptocurrency market plunged across the board this afternoon, with strong risk-avoidance sentiment:

Price plunge: Bitcoin briefly fell below the $72,000 support level and once dropped to around $71,300 (down more than 2% intraday). Ethereum also moved down in sync to around $2,200, and major coins such as XRP and SOL also fell noticeably.

Mass liquidations: In the past 24 hours, about 106,000 people worldwide were liquidated, and the total liquidation amount reached $306 million. With long positions accounting for a relatively higher share, it suggests the market was insufficiently prepared for sudden negative developments.

The market is currently in a typical “liquidity contraction” phase, with funds reducing their risk exposure. Although Bitcoin occasionally shows safe-haven performance as “digital gold,” under the shadow of war clouds, in the short term it still mainly tracks fluctuations in global risk appetite. Investors should watch for downside risks caused by further deterioration of the situation.