Cryptocurrency Market Recovers $75 Billion Amid U.S.-Iran Peace Deal Progress

Cryptocurrency markets have seen a recovery of approximately $75 billion in total capitalization following an update from U.S. President Donald Trump regarding a peace agreement with Iran. According to Cointelegraph, Trump announced on Truth Social that a deal has been "largely negotiated" between the United States, Iran, and several Middle Eastern countries, including Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan, and Bahrain. Trump stated that the agreement is subject to finalization and that the final aspects and details are currently being discussed, with an announcement expected soon. A significant component of the deal includes reopening the Strait of Hormuz, a critical waterway whose closure has led to increased global energy prices and impacted the cost of living in many countries. The closure has also affected investments in high-risk assets like cryptocurrencies, which have seen a retreat in recent times. The announcement comes amid a fragile ceasefire that began in early April, following several unsuccessful attempts to reach an agreement between the U.S. and Iran. U.S. Secretary of State Marco Rubio, during a visit to India, reiterated Trump's demands for a peace deal, emphasizing that "Iran can never have a nuclear weapon," and that the straits should be open without tolls, with Iran required to turn over its enriched uranium. In response to the news, the cryptocurrency market reacted positively. Bitcoin prices, which had fallen to a five-week low of $74,250 on Saturday, saw a recovery, reaching the 50-day exponential moving average at $77,000 in early trading on Sunday. However, it later fell back to $76,800 at the time of publication. Despite the minor recovery, Bitcoin remains in a downtrend, having failed to break resistance at $82,000, and is still down 39% from its peak in October.