The U.S. and Iran peace talks in Islamabad lasted over 21 hours, and the two countries couldn’t reach an agreement
The news led to crypto liquidations of over $277 million in 24 hours, and major assets like bitcoin and XRP dropped to $70,000 and $1.32, respectively.
Bitcoin and other crypto assets could soon hit a negative gamma zone if the peace talks fail to resume, or the ceasefire timeline isn’t extended.
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On April 11, the U.S. and Iran held talks in Islamabad, which were brokered by trusted Pakistani officials, on the possibility of a peace deal. This follows both parties’ announcement of a two-week ceasefire on April 7. However, after 21 hours of negotiations, neither the U.S. nor Iran could reach an agreement.
The market reacted sharply to the news of the breakdown in peace talks, with Bitcoin dropping from $73,000 to around $70,000 and XRP falling from $1.36 to $1.32. Although the two countries could still reach an agreement, the damage has been done again—crypto liquidations over the last 24 hours have crossed $277 million. As the bearish market pressure intensifies, the most important question right now is how much worse could it get?
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In 2026, geopolitics has become crypto’s biggest driver, and the two are now directly connected. The market’s performance has been tied to war news since the first set of bombs hit Iran on February 28. Within 72 hours of the first attack, over $128 billion in liquidations were recorded.
When U.S. President Donald Trump suggested at the start of Q2 that the conflict could be over in three weeks, the market reacted positively. Bitcoin reached $70,000, and XRP regained its $1.35 support. But the positive sentiment didn’t last as fears of further escalations weakened its momentum.
The collapse of the Islamabad talks on April 12 delivered the latest blow to the already fragile sentiment in the crypto market. It was the first sit-down since the 1979 Islamic Revolution, which transformed Iran into a religious state, making the talks a big deal. Vice President JD Vance has said that the breakdown happened because Iran has refused to abandon its nuclear weapons program. Within hours of the news, the U.S. military announced that it would begin blockading Iranian ports, throwing the ceasefire into serious doubt.
Many fear that the recent tensions could lead to another closure of the Strait of Hormuz, through which roughly 20% of the world’s oil supply passes. This hasn’t helped the market since it is already trading in extreme fear territory. The recent market sell-off seems to come from a cycle that has been in place since February. During this time, the war news has shocked the market, triggered oil price surges, and tightened monetary conditions.
