According to widely circulating reports, Sky News Arabia has reported that Iran’s Deputy Foreign Minister said the country is prepared to abandon its entire nuclear program if the United States presents a satisfactory alternative offer.
Bitcoin is trading around $72,855 at the time of writing, recovering from the lows it hit when US and Israeli forces launched strikes on February 28.
The Iran War’s Impact on Crypto
When the conflict began, Bitcoin dropped sharply, falling to around $63,000 in a matter of hours. Over $300 million in long positions were liquidated.
Oil jumped 7% as traders priced in potential disruption to the Strait of Hormuz, the chokepoint through which roughly one-fifth of the world’s daily oil supply passes. With energy prices rising, inflation concerns followed.
Former US Treasury Secretary Janet Yellen captured the knock-on effect for crypto directly: “I think the recent Iran situation puts the Fed even more on hold, more reluctant to cut rates than they were before this happened.”
With the Federal Reserve’s March 18 meeting already in focus, a rate cut is now widely considered off the table. Higher rates mean tighter liquidity and tighter liquidity has historically weighed on risk assets including Bitcoin.
A ceasefire or deal would put that chain in reverse: oil falls, inflation pressure eases, and the conditions for a Fed pivot improve.
Also Read: Will Bitcoin Recover or Crash to $40K Next? Analysts Can’t Agree
What Analysts Are Saying
SungHoon Lee, who claims to be the world’s highest IQ holder with a score of 276 and an XRP ambassador, said: “BTC to $100K isn’t a question anymore. It’s a countdown,” citing the potential for mass liquidation of short positions opened during the war.
Lee argued that five days of conflict compressed years of geopolitical tension into a single week and that Iran’s willingness to drop its nuclear program removes the single biggest fear that drove markets lower in the first place.
Meanwhile, Binance had a bullish take as well: “Gold had thousands of years. Equities had centuries. Real estate had civilization. Bitcoin has had 16 years… and it’s just getting started.”
Traders, Beware: Risks Remain
The situation is still fluid, and reports have not been officially confirmed.
US Secretary of Defense Pete Hegseth told Israel to “keep going until the end” in overnight talks with Defense Minister Israel Katz, signalling Washington is not yet ready to stand down.
Iran’s national security officials have also previously denied any outreach to Washington. Polymarket gives a ceasefire by March 31 just 26% odds.
Bitcoin’s first resistance sits at $74,000-$75,000. The next Federal Reserve meeting is March 17-18.
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