U.S.-Iran Negotiation Breakthrough, Bitcoin Once Dropped Below 71k! Analyst: Holding "this range" is the only chance for a rebound

As the US-Iran peace negotiations announced to have broken down, Trump considered blockading the Strait of Hormuz and resuming military strikes on Iran, causing geopolitical tensions to rise again. The cryptocurrency market immediately experienced risk-off selling pressure, with Bitcoin briefly breaking below the $71k mark. Last week’s optimism driven by “ceasefire expectations” was wiped out.

According to CoinGecko pricing, Bitcoin fell 2.6% in the past 24 hours to $71,093, with a low of $70,617.48 this morning (13); Ethereum also plummeted 3.6% to $2,202; Ripple (XRP) dropped 2%; Solana (SOL) declined 3.25%.

BTC Markets analyst Rachael Lucas pointed out: “Today’s crypto market is entirely dominated by headlines about geopolitical issues. After 21 hours of peace talks in Islamabad, Pakistan, between the US and Iran, the negotiations ultimately broke down, triggering a fierce ‘risk-off sell-off.’”

US Vice President JD Vance stated that the Iranian representatives refused to accept the conditions set by the US; meanwhile, Iranian state media claimed that the breakdown was solely due to the US提出的“不合理的要求”。 Last week, after Trump announced a two-week ceasefire agreement, cryptocurrencies and other risk assets rebounded temporarily, but investors remain cautious, as reaching a substantive peace deal would require significant concessions from one side, and currently, neither side seems willing to compromise.

However, what truly worsened market sentiment was Trump’s subsequent order to block the Strait of Hormuz, restricting all ships attempting to enter or exit Iranian ports, thereby applying pressure on Iran, which continues to charge up to $2 million in toll fees per oil tanker. This move also significantly increased the risk of further escalation of Middle Eastern conflicts.

Even though short-term market trends are shrouded in war clouds, Rachael Lucas believes that the underlying structure of the crypto market remains robust. She said:

Although short-term volatility has intensified, based on institutional investors’ movements, the market’s underlying structure remains quite solid.

According to BTC Markets observations, Bitcoin spot ETFs saw a net inflow of up to $786 million last week, marking the best weekly performance since February this year. Besides BlackRock’s IBIT continuing to attract funds, Morgan Stanley’s newly launched MSBT also successfully attracted $46 million, thanks to its lowest management fee in the market.