Peace Talks Collapse…Bitcoin Plunges, What's Next?

▲ US Vice President Vance leaving Pakistan after failed negotiations with Iran

As news broke of the collapse of Middle East peace talks, Bitcoin immediately fell by over $2,000, sending the market back into a state of fear.

According to crypto media outlet Cryptopotato on April 12 (local time), Bitcoin plummeted from its three-week high of over $73,500 to below $71,500 immediately after the news of the talks' collapse. Previously, when US President Donald Trump announced a two-week ceasefire, Bitcoin surged from $68,000 to around $73,000, but with the failure of these talks, a significant portion of those gains has been surrendered.

US Vice President JD Vance stated after lengthy negotiations that “Iran did not accept our terms” and that no agreement was reached. As a result, the geopolitical uncertainty that has dominated the market for the past month and a half has once again come to the forefront.

The Iranian side also stated that the negotiations were “intensive” but criticized excessive US demands, indicating that significant differences remain between the two sides. While room for further talks was left open, expectations for short-term de-escalation have largely receded.

Market analysts believe this situation will affect financial markets broadly. The Cobasi Letter predicted that international oil prices could surge again and stock markets could face downward pressure. Indeed, the Nasdaq 100 index had already risen by 5% over the weekend on hopes of a deal, but in a worst-case scenario, there's a possibility of a sharp decline.

The key going forward is the level of US response. The direction of risky assets, including Bitcoin, will likely be determined by whether the US chooses to stabilize the market through further negotiations or escalate military pressure. Analyses suggest that increased short-term volatility is inevitable.

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