Bitcoin plunged below $75,000 on Wednesday after a renewed surge in geopolitical tensions. The downfall arose from the mixed messages regarding an alleged deal between the United States and Iran.
Bitcoin Falls Amid US-Iran War Tensions
The BTC price reached its low point of the day at $74,571.56, before moving up a bit, according to TradingView data. At the time of writing, Bitcoin traded around $75,129. It still represents a decrease of around 1% in the last 24 hours despite a slight rebound.
Meanwhile, the market cap of BTC stood at approximately $1.5 trillion. Moreover, it exhibited a trading volume of more than $32 billion in a day as the sell pressure rises.
The slump in Bitcoin was triggered after the markets were hit by reports from Iranian state television, which led to a controversy. Iran’s media noted that Tehran and Washington were nearing a peace deal to help defuse the situation after months of conflict in the region.
The so-called memorandum of understanding had suggested the restoration of commercial shipping activity in the Strait of Hormuz within a month, the report said. The draft also reportedly contained clauses to allow the U.S. to withdraw troops from Iran’s immediate vicinity. Moreover, it asks the U.S. lift naval blockade.
Iran’s state news media said the measure was still unofficial and not complete. Further, it noted that Tehran would not move forward without “tangible verification.”
If the negotiations prove successful, a final agreement could be formalized within 60 days in the Security Council of the United Nations, the broadcaster said. However, the White House quickly rejected the idea of an agreement with Iran.
What Did The U.S. Say?
In a statement issued Wednesday, U.S. officials brushed aside the report altogether. They stated: “This report from Iranian controlled media is not true and the MOU they ‘released’ is a complete fabrication.”
The statement went on to say: “Nobody should believe what Iranian state media is putting out. FACTS MATTER.”
Washington also had made no deal with Tehran, the U.S. administration said. The U.S. is not “satisfied” with any proposed deal, President Donald Trump said. This led to the drop in Bitcoin price today.
The framework was reported to have come out of continued indirect negotiations between Washington and Tehran that reportedly started after a recent conflict between Iran and Israel this year. Nonetheless, shipping in the Gulf region was affected by the conflict and fears were raised of wider instability in global energy and financial markets.
