Iran has indicated that there are no current plans to resume negotiations with the United States and that tensions between the United States and Iraq have again risen. As a result of the rise in risk-averse sentiment, Bitcoin had risen before it fell by $65,000, and the market focus had shifted from United States inflation data to the situation in the Middle East.
The increase in bitcoin's return to inflation data
Reports indicate that the United States Producer Price Index (PPI) was below expectations, that at one time risk assets had been supported and that there had been a continued rebound in the Bitcoin drive. However, as the Iranian side denied that it would resume negotiations with the United States, market sentiment rapidly weakened.
According to data quoted by crypto.news, Bitcoin fell briefly by $65,000, reporting about $64,800, or less than 1 per cent in the daytime. This means that the anticipated increase, driven by the earlier slowdown in inflation, was largely interrupted.
The military operation continues to escalate.
According to the Ministry of Foreign Affairs of Iran, the current focus remains on defence arrangements and there is no negotiated plan with the United States. This statement contradicts what Trump said in his earlier interview with Fox. Trump stated that Tehran had previously approached on its own initiative and hoped for an agreement.
At the same time, the conflict between Iraq and the United States has not cooled. It was mentioned that the United States Central Command stated on social platform X that the United States military had carried out a strike on the coast defence system and cruise missile storage and launch facilities on Chase Island, which lasted approximately 90 minutes.
A few hours later, the United States Central Command added that the United States forces had launched a second strike, targeting the Iranian military capability used to threaten ships transiting the Strait of Hormuz. The United States describes the waterway as an important route to global trade and claims that it aims to reduce Iran ' s threat to commercial shipping.
The forecast market is cautious about diplomatic prospects
In addition to the volatility of spot prices, the forecast market also reflects a lack of optimism about short-term diplomatic progress. Encrypted prediction platform Polymarket transaction data show that the market now gives only 25% of the chance to restart the American-Israeli peace talks within the month.
The market niche is still looking for new drivers between a reduction in inflationary pressure and an increase in geo-risk. For the time being, the escalation of the situation in the Middle East has re-pressed Liddle from inflation data and investors will continue to follow closely the statements and military advances made by the United States and Iran.