Bitcoin and Ether rallied after Axios reported that US and Iranian officials are nearing a 14-point memorandum of understanding aimed at ending the war. According to the report, the proposed framework would first declare a halt to hostilities and open a 30-day window for detailed negotiations, prompting a broad rebound in risk assets.
The talks were said to involve Steve Witkoff and Jared Kushner on the US side, with negotiations taking place both directly and through intermediaries. Key terms reportedly include a pause in Iran���s nuclear enrichment activities, US sanctions relief and the release of frozen funds, as well as the removal of restrictions on transit through the Strait of Hormuz. US officials expect Iran to respond to the main terms within 48 hours.
Crypto reacts to easing geopolitical risk
Following the headline, crypto markets moved higher. Bitcoin climbed toward $82,000, while Ether broke above $2,400. The move reflected a broader recovery in risk appetite after weeks of pressure from war-related uncertainty, elevated energy prices, and tighter financial conditions.
Since the conflict began, disruptions tied to the Strait of Hormuz had pushed Brent crude above $126, weighing on global sentiment and increasing inflation concerns. If the memorandum is finalized, a pullback in oil prices could help ease inflation pressure and improve the outlook for future Federal Reserve easing. That possibility has led investors to consider a simultaneous relief rally in both crypto and equities.
Deal uncertainty remains
Still, White House officials acknowledged that divisions among Iranian factions remain significant, leaving the outcome uncertain. For crypto traders, the current bounce appears driven mainly by expectations of de-escalation. Any setback in negotiations could quickly revive volatility across digital assets and broader financial markets.