US Vice President Returns Empty-Handed... Will Bitcoin Collapse Below $70,000 Amid Negotiation Breakdown?

US Vice President Vance

A cold selling storm is once again sweeping through the virtual asset market, which had been anticipating a spring of peace in the Middle East. With news breaking that the US-Iran peace negotiations have ultimately collapsed, major virtual assets, including Bitcoin (BTC), which had been holding firm, have all sharply declined.

According to cryptocurrency market data aggregator CoinMarketCap on April 12, as of 10:42 AM KST, the leading cryptocurrency Bitcoin plummeted by 1.29% in just one hour, falling to $72,036.75. Ethereum (ETH), the second-largest by market cap, also saw its decline widen, dropping by 1.86% to $2,238.18 during the same period. Furthermore, XRP (Ripple) fell to $1.34, and Solana (SOL) plunged 1.71% compared to an hour ago, trading at $83.45, with the entire market painted red.

The source of the panic selling that engulfed the market was the bad news from Islamabad, Pakistan. US Vice President JD Vance, who was leading marathon peace negotiations with the Iranian delegation, officially declared the failure to reach an agreement in a press interview. He stated that they ultimately failed to narrow differences on key issues, such as the opening of the Strait of Hormuz and a ceasefire in Lebanon, and was boarding a flight back to the US empty-handed.

Following an overnight 14-hour meeting the previous day, additional negotiations resumed today also ended in disarray, turning the disappointment of investors who had been observing, hoping for a dramatic breakthrough, into a fierce sell-off. In particular, with the entry of a US Navy destroyer into the Strait of Hormuz and Iran's strong warnings of military retaliation creating a volatile situation, the closure of diplomatic channels for resolution led to extreme risk-aversion consuming the market.

The short-term outlook is shrouded in thick dark clouds. With geopolitical risks at their peak, the virtual asset market is highly likely to experience erratic price volatility for the time being. Experts warn that if Bitcoin fails to hold the psychological support level of $70,000, a large-scale cascade of long position liquidations could occur, leading to an uncontrollable increase in the decline.

However, from a medium-to-long-term perspective, some suggest that rather than being swayed by excessive fear, it is necessary to calmly monitor the trends of macroeconomic indicators. This is because the upcoming release of the US March Producer Price Index and statements from key Federal Reserve officials this week are crucial variables that will indicate the direction of monetary policy. As price stability is confirmed and the possibility of resumed back-channel negotiations cannot be ruled out, thorough risk management and cautious market access are essential at this time.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*