Bitcoin Dips Under $71K as Ceasefire Talks Between U.S. and Iran Hit Snags

Bitcoin stumbled below the $71,000 mark on Thursday, retreating from earlier gains fueled by hopeful ceasefire discussions between the U.S. and Iran. The cryptocurrency had climbed sharply earlier this week when news broke that both sides were open to a temporary truce and face-to-face peace talks.

However, the ceasefire enthusiasm dimmed quickly as Iran accused the U.S. and Israel of breaching terms related to Lebanon and the Strait of Hormuz. Tehran insists the ceasefire should include Lebanon and demands that Israel halt its attacks on the country, a condition neither Washington nor Tel Aviv has accepted.

The Strait of Hormuz remains a focal point of the dispute, with Iran maintaining its closure despite prior suggestions they might reopen this vital oil shipping lane. The passage accounts for roughly 20% of global oil supply, so the blockade adds pressure to energy markets and geopolitical risk.

President Donald Trump signaled no rush in dialing back U.S. military presence in the region, stating the troops will stay stationed until what he calls a "real agreement" materializes. Trump also reiterated calls for Iran to stop nuclear activities and lift the Strait blockade.

Following the initial ceasefire news, crypto markets rallied on Wednesday, only to lose steam on Thursday alongside broader risk assets like equities and foreign currencies. Bitcoin's decline dropped it about 1.2%, down to roughly $70,862 by early U.S. trading hours.

Adding complexity to crypto sentiment, legislative efforts in the U.S., such as the CLARITY Act, aiming to provide clearer regulations for digital assets, have hit roadblocks and show little immediate progress in Congress.

The Financial Times reported that Iran plans to levy tolls payable in cryptocurrency, specifically Bitcoin, on oil tankers passing through the Strait of Hormuz-a strategic move in response to ongoing hostilities. This development could bring a new dynamic to the use of digital assets in geopolitical conflicts and maritime trade.

Meanwhile, altcoins are reflecting the market's risk-off mood. Ethereum dipped over 3% to just above $2,175, while XRP lost nearly 4%. Other tokens like Solana, Cardano, and Binance Coin also fell between 2% and 4%. Even meme coins like Dogecoin slipped 3.5%, and the $TRUMP token dropped just under 3%.