Bitcoin Surpasses Historical High of $77,000 following news of a potential extension of the ceasefire and the possible reopening of the Strait of Hormuz due to negotiations between the US and Iran. The rise in the price of the first cryptocurrency occurred against the backdrop of overall positive dynamics in the financial markets and significant changes in the energy market.
This is reported by Finway
Growth of the Crypto Market and Changes in the Stock Market
Amid reports of progress in negotiations between Washington and Tehran, not only Bitcoin but also other key crypto assets demonstrated moderate growth. At the same time, the S&P 500 index updated its historical record, surpassing 7500 points, indicating increased investor interest in riskier assets.
Meanwhile, oil prices fell to around $95 per barrel. This occurred due to expectations of the resumption of shipping through the Strait of Hormuz after the completion of part of the demining work.
“Bitcoin rose above $77,000 amid reports of a possible deal between the US and Iran regarding the extension of the ceasefire and the reopening of the Strait of Hormuz.”
According to Coinglass, liquidations in the cryptocurrency market amounted to about $225 million over the day, with most losses incurred by traders who opened long positions. The fear and greed index during this period increased from 25 to 30 points, yet the market remains in the fear zone.
Details of the US-Iran Negotiations
According to leading global media, the US and Iran have agreed on a “framework” memorandum that provides for the extension of the ceasefire for another 60 days. At the same time, the parties continue to work on a final agreement to resolve the conflict.
The memorandum also contains agreements for the gradual reopening of the Strait of Hormuz for shipping, which is expected to resume within 30 days after the signing of the document. Meanwhile, some provisions of the memorandum are still in the process of being agreed upon.
Among the key points of the memorandum:
- Iran’s confirmation of its commitment to refrain from developing nuclear weapons;
- Disposal of stockpiles of highly enriched uranium;
- Gradual easing of sanctions and unfreezing of Iranian assets after the conditions of the agreement are met.
Iran stated that the reopening of the Strait of Hormuz will occur in stages. The US, in turn, is expected to unfreeze about $12 billion of Iranian assets and ease the maritime blockade. According to diplomatic sources, the final agreement has not yet been signed, and the memorandum is of a framework nature.
Earlier, reports indicated $850 million in transactions benefiting Iran conducted through the Binance cryptocurrency exchange, which also influenced the information landscape surrounding the crypto market.