Former US President Donald Trump announced a peace deal between the United States and Iran is scheduled for signing on Sunday, which would reopen the Strait of Hormuz. The potential resolution of the naval blockade, which has constrained global energy supplies and pressured crypto markets, is viewed by some analysts as a catalyst for renewed investment in risk assets like Bitcoin.
Former US President Donald Trump stated a deal to end fighting with Iran is scheduled to be signed on Sunday. This would immediately reopen the Strait of Hormuz, according to his post on Truth Social.
Mediator Pakistan also signaled an agreement could be reached within 24 hours. Pakistani Prime Minister Shehbaz Sharif said on X that “Pakistan is preparing for the electronic signing of the peace deal immediately after.”
The expected memorandum of understanding would extend a ceasefire for 60 days. The blockade has choked 20% of the world’s oil and liquefied natural gas supply, contributing to higher global asset prices.
Iranian officials have not confirmed the Sunday signing timeline. Foreign Ministry spokesperson Esmaeil Baghaei told state media the signing would not occur on Sunday but could happen “in the coming days.”
Crypto analyst Michaël van de Poppe suggested a peace deal will likely prompt a surge in Bitcoin. He stated “Liquidity will pour back into risk-on assets as liquidity will seek for an opportunity.”
Spot Bitcoin exchange-traded funds recorded about $315.8 million in net outflows for the week ended Friday. This marked the fifth consecutive week of outflows for these crypto funds.
CoinShares head of research James Butterfill told Cointelegraph the recent outflow was primarily driven by geopolitics. Uncertainty around the Iran conflict has weighed on the outlook for interest rates.
Bitcoin was trading at $64,491 at the time of writing. This represented a gain of 1.5% over the previous 24 hours.
