U.S.-Iran negotiations are expected to boost the virtual currency market rally, with Bitcoin surpassing $75,000

As expectations of easing Middle East tensions strengthen, the virtual currency market surged significantly on the 14th local time. With observations that the U.S.-Iran peace talks may be restarted spreading, investors are believed to be more actively moving funds into virtual currencies, which are classified as relatively high-risk assets.

According to reports from U.S. economic media Fortune and Investing.com, Bitcoin’s price broke through $75,000 that day. This was an increase of about 5% from 24 hours earlier and the highest price in about a month. Ethereum also rose 7%, reaching $2,400, setting a two-month high; Ripple rose 3%, Solana rose 4%, and Dogecoin rose 5%. The total market capitalization of virtual currencies also grew by 4%, to $2.6 trillion.

This steep rally is interpreted as the result of expectations that geopolitical tensions are easing affecting the entire financial market, rather than problems inherent to virtual currencies themselves. If war or conflict continues, investors typically tend to shift from risk assets such as stocks or virtual currencies to safe assets such as the U.S. dollar and government bonds. Conversely, when the possibility that the conflict may weaken increases, funds move back into assets that can take on risk and are expected to deliver higher returns. This time, that trend was also particularly evident in the virtual currency market.

In fact, the U.S. and Iran held peace talks in Islamabad, Pakistan on the 11th and 12th, but no agreement was reached. However, reports say the two countries are continuing informal contacts and may hold a second round of talks in Islamabad. U.S. President Donald Trump also mentioned in an interview with the New York Post that conditions could change in the next two days, adding weight to the possibility of restarting the negotiations. This expectation is also reflected in the U.S. stock market, with both the S&P 500 and Nasdaq indices showing an upward trend.

Market participants have noted that virtual currencies are more sensitive to investor sentiment than traditional financial markets. FxPro senior market analyst Alex Kupecicic explained that, in traditional financial markets, the revival of risk appetite has driven the rise in virtual currencies. This trend may continue in the future depending on the progress of Middle East talks and the overall atmosphere in U.S. financial markets. However, if negotiations break down again or uncertainty increases, the volatility of virtual currency prices may expand once more.