Bitcoin (BTC) hit a high of $73,800 early on April 12 before reversing sharply. By 09:30 UTC, it had plunged to $71,313, losing over 2% in half an hour, now trading around $71,557. The sell-off coincided with the breakdown of US-Iran negotiations that had dragged on for more than 20 hours.
Talks Draw 370+ Officials, End in Stalemate
Delegations from both sides met at the Serena Hotel in Islamabad on April 11. The US team included Vice President JD Vance, Middle East envoy Steve Witkoff, and Jared Kushner; Iran's side was led by Speaker Mohammad Bagher Qalibaf and Foreign Minister Abbas Araghchi. The total headcount exceeded 370, marking an unusually large diplomatic effort.
Hormuz Strait Transit Rights at Core
According to The New York Times, Washington demanded immediate free passage through the Strait of Hormuz, while Tehran insisted on waiting until a final comprehensive deal is reached. During the talks, President Trump stated publicly that "it doesn't matter if we reach a deal," claiming the US had already "militarily defeated Iran." The remarks were seen as pre-negotiation pressure tactics but also raised doubts about US sincerity.
Iranian media showed conflicting narratives: the hardline Tasnim news agency said the first day of talks had "concluded," while the more moderate Mehr agency indicated another round would resume "after sunrise," suggesting channels remain open. The White House has declined to disclose details of the negotiations.
Market participants had initially viewed the talks as a positive signal for de-escalation of geopolitical risk, helping push bitcoin above $73K. With the breakdown confirmed, bulls rushed for exits. Open interest in BTC futures continues to climb, indicating intense long-short positioning.