As the selloff progressed, Bitcoin’s market capitalization reached approximately $1.5 trillion, and daily trading volume exceeded $32 billion. This is a sign that traders are moving quickly in response to the rapidly changing news cycle.
Sell-off begins due to rigged transaction
The chaos began when Iranian state TV reported that Tehran and the United States had agreed to a memorandum of understanding aimed at easing months of conflict.
The draft reportedly includes recovery of commercial shipping through the Strait of Hormuz within a month, withdrawal of U.S. troops from areas near Iran, and lifting of the naval blockade.
The Iranian broadcaster acknowledged that the move was still unofficial. According to the report, Tehran will not proceed without so-called ‘substantive verification’ and that if talks progress, a final agreement could be reached in the UN Security Council within 60 days.
Market moves with mixed signals
Before this story broke, Bitcoin was trading above $75,000. The price fell to a daily low of $73,200 before rebounding slightly to around $75,115, according to data from Coingecko. It’s still down about 1% on the day.
The White House dismissed the report without delay. Officials said the MoU announced by Iran’s state media was “completely fabricated” and warned that no one should take its claims at face value.
President Donald Trump went further, saying the United States was not satisfied with any agreement offered by Iran. The statement sent shockwaves through markets already shaken by conflicting signals from both sides.
Washington Closes
The broader backdrop driving the market reaction includes months of conflict that has already disrupted shipping in the Gulf region and growing fears about energy supplies and financial stability globally.
Current tensions reportedly date back to fighting between Iran and Israel earlier this year, which prompted US troops to move deeper into the region.
A true ceasefire or trade corridor agreement would have real economic impact. This is why even unverified reports can move prices so dramatically.
This episode highlights how sensitive the cryptocurrency market has become to geopolitical developments, especially those related to global transportation and energy supply chains.
Featured image by Getty Images, chart by TradingView
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