Following the sudden fluctuation in the cryptocurrency market on Saturday night, simultaneous declines in leading crypto assets and important altcoins attracted attention. The trigger for the movement was the statement made by US Vice President JD Vance. Vance announced that no agreement was reached in the talks between America and Iran aimed at extending the ceasefire period.
Selling pressure in the market after Vance’s statement
Representatives of the two countries met in Pakistan to overcome the deadlock between them after the US campaign, which lasted about six weeks. At the press conference held after the meeting, Vice President Vance’s message saying “No agreement could be reached” caused significant fluctuations in the market.
Immediately after the announcement, Bitcoin price fell to $ 71,600, while ether reached $ 2,200. XRP was withdrawn to $ 1.33. The downward movement in the market was not limited to these three assets. CoinDesk 20 index also lost approximately 2 percent of its value, falling to 1,188.52.
The main reason for this rapid decline in the markets is the lack of results from the talks and the prevailing expectation that tensions in the region will continue.
Nuclear activities were on the main agenda during the talks
At the press conference, Vance underlined America’s demands and stated that they were open to taking a step back on which issues. However, some titles are no longer the subject of direct negotiation.
It was emphasized that the USA has two main “red lines”. The first of these is that Iran does not pursue nuclear weapons. Secondly, access to any technology that will enable rapid progress in this field should not be left to Iran. It was stated that these points constituted an obstacle for the parties to reach an agreement during the negotiations.
Vance stated that they clearly conveyed the US’s red lines, clearly stated which issues could be agreed upon, and gave this message to their interlocutors in the clearest way possible.
The lack of progress in these negotiations despite all efforts increases the possibility of longer-term fluctuations in the market. Both regional developments and high volatility in crypto markets caused investors to be cautious.
