Cryptocurrency markets have recovered around $75 billion in total capitalization following a progress update on Saturday from US President Donald Trump on a peace agreement with Iran.
Trump said a deal has been “largely negotiated” among the United States, Iran, and several Middle Eastern countries, in a post on Truth Social on Saturday.
The countries included in the negotiations were Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan and Bahrain.
“An agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other countries, as listed,” he said. His post said:
“Final aspects and details of the deal are currently being discussed and will be announced shortly. In addition to many other elements of the agreement, the Strait of Hormuz will be opened.”
The deal also includes reopening the Strait of Hormuz. The closure of the key waterway has caused global energy prices to spike and has weighed on the cost of living in many nations. It has also hit investments in high-risk assets such as crypto, which have retreated recently.
Three months of war takes its toll
Trump’s announcement comes amid a fragile ceasefire that began in early April with several failed attempts at reaching an agreement between the US and Iran.
US Secretary of State Marco Rubio reiterated Trump’s demands for a peace deal during a visit to India on Saturday. “Iran can never have a nuclear weapon. The straits need to be open without tolls. They need to turn over their enriched uranium,” he said.
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Crypto markets react positively
Bitcoin prices fell to a five-week low of $74,250 on Saturday, according to TradingView.
The asset recovered to tap the 50-day exponential moving average at $77,000 in early trading on Sunday before falling back to $76,800 at the time of publication.
BTC has resumed its downtrend after failing to break resistance at $82,000 and remains down 39% from its October peak.
BTC sees minor recovery after Trump’s deal announcement. Source: TradingView
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