Iran rejects President Trump’s peace push as Bitcoin falls below $65,000

Bitcoin has fallen below $65,000 after Iran rejected new prospects for peace talks with the United States, putting fresh pressure on risk assets as military operations continue.

Iran’s Foreign Ministry said there are currently no plans for negotiations with the United States and that the country’s immediate priority remains its defense efforts. The statement came after US President Donald Trump hinted in a Fox interview that diplomatic contacts could be resumed, claiming that Iran had previously been in contact and wanted a deal.

Conflicting messages have been received as tensions between the United States and Iran escalate once again. The two countries have traded attacks in recent days, with President Trump reinstating the Iranian blockade in the Strait of Hormuz and warning that the United States could expand military operations if Iran does not return to negotiations.

Bitcoin (BTC) briefly gave up early gains and fell below the $65,000 level, ending the day at around $64,800, down less than 1%, according to data from crypto.news. The decline interrupted a rally that had been followed by weaker-than-expected U.S. producer price index (PPI) data in early trading.

New military operations put pressure on risk appetite

While inflation data initially favored cryptocurrencies, new military developments have shifted investors’ attention back to geopolitical risks.

Earlier in the day, U.S. Central Command (CENTCOM) announced on the X that it had completed a 90-minute wave attack targeting coastal defense systems and cruise missile storage and launch sites on Greater Tunbu Island. According to CENTCOM, the operation was aimed at reducing Iran’s ability to threaten commercial shipping through the Strait of Hormuz.

Hours later, CENTCOM announced further escalation. In a separate post to Centcom said the waterway is critical to global commerce and said the operation was carried out under the direction of the U.S. commander in chief.

Centcom said the attack further reduced Iran’s ability to threaten commercial shipping through the Strait of Hormuz, one of the world’s most important energy trade routes. The operation follows days of intense military exchanges between Washington and Tehran, causing further uncertainty in global financial markets.

crypto.news previously reported that cryptocurrencies rose after US PPI inflation was lower than economists expected, reinforcing hopes that inflationary pressures could continue to ease. However, these gains disappeared as developments surrounding the US-Iran conflict became the market’s dominant catalyst.

Prediction markets point to limited optimism for diplomacy

Beyond price trends, prediction markets continue to show low expectations for a diplomatic breakthrough this month.

Traders currently believe there is only a 25% chance that peace talks between the US and Iran will be held again by the end of July, according to data from crypto-based prediction platform Polymarket. Prediction markets do not guarantee future results, but they can provide real-time insight into participant expectations based on active trading.

Attention is also focused on Iran’s senior leadership seeking additional guidance on Iran’s position. Mohammad Qalibaf, identified as Iran’s top negotiator in the referenced report, is expected to issue a statement later today addressing the ongoing conflict and recent military developments.

For now, financial markets remain caught between improving US inflation statistics and rising geopolitical uncertainty. Slowing inflation initially supported demand for Bitcoin and other digital assets, but Iran’s refusal to negotiate, continued U.S. military strikes, and uncertainty over future diplomatic efforts have traders continuing to focus on geopolitical headlines as the next major driver of market sentiment.