Bitcoin has reached a new high, rising above $77,000 in response to news regarding a possible extension of the ceasefire between the US and Iran and the prospects of reopening the Strait of Hormuz for shipping.
This is reported by Business • Media
Market Reaction: Rise in Cryptocurrencies and Drop in Oil Prices
Alongside Bitcoin, other major crypto assets also showed slight increases. The US stock market reacted positively to this news — the S&P 500 index set a new historical record, surpassing 7,500 points.
Amid expectations of reopening the Strait of Hormuz, oil prices have significantly decreased — a barrel of Brent crude fell to around $95. This is attributed to the likelihood of a return to full shipping operations and a reduction in geopolitical tensions.
In the past day, liquidations in the cryptocurrency derivatives market reached about $225 million. Most of these losses were incurred by traders who opened long positions anticipating a rise.
The Fear and Greed Index in the crypto market increased from 25 to 30 points over the day, but it remains in the fear zone, indicating a cautious sentiment among investors.
Key Details of US-Iran Negotiations
According to reports, Washington and Tehran have reached a preliminary agreement in the form of a framework memorandum of understanding. The document stipulates the continuation of the ceasefire for 60 days, as well as the gradual reopening of the Strait of Hormuz and the demining of its waters.
It is expected that after the signing of the documents, Iran will restore shipping through the strait within a month. At the same time, US administration officials confirmed that the final agreement has not yet been signed, and many details remain under negotiation.
“The document is still of a framework nature, and some provisions still require agreement,” noted a senior US administration official.
Diplomatic sources claim that the memorandum includes provisions for Iran to abandon the development of nuclear weapons, the disposal of stockpiles of highly enriched uranium, as well as the gradual easing of sanctions and the unfreezing of Iranian assets after the agreements are fulfilled.
The Iranian side emphasizes that the reopening of the Strait of Hormuz will occur in stages. A condition for this is the unfreezing of approximately $12 billion of Iranian assets and the easing of the maritime blockade.
It was previously reported that transactions worth $850 million in favor of Iran were conducted through the Binance cryptocurrency exchange.