Crypto Market Falls Despite U.S.-Iran De-Escalation as ETF Outflows Continue

A new attempt at easing tensions in the Middle East has emerged. According to Axios, the United States and Iran have already signed a memorandum of intent via video conference to end the war and reopen the Strait of Hormuz. The ceremony originally planned for Friday in Switzerland was therefore brought forward.

Since the end of February, both sides had repeatedly suggested that an agreement could be reached. Several times, negotiations appeared to be close to completion before new tensions or military incidents pushed the talks back. Now observers hope that the current agreement may hold. The planned reopening of the Strait of Hormuz is considered a particularly important step for stabilizing global energy and financial markets.

Losses dominate the crypto market

Despite the positive news, weakness in the crypto market continued. Bitcoin is trading at 63,900 dollars, losing 2.85% on the day. Ethereum is down 3.58% at 1,726 dollars. Solana is also under pressure, trading at 70.68 dollars, a decline of 3.54%. XRP has fallen by 4.15% and is trading at 1.16 dollars.

The U.S. Federal Reserve meeting on Wednesday evening also weighed on sentiment. Although the Fed left its key interest rate unchanged, both gold and traditional stock markets moved sharply lower afterward.

The negative trend also continues among spot ETFs. Bitcoin ETFs recorded outflows of 82.16 million dollars yesterday. Spot Ethereum ETFs saw net outflows of 29.37 million dollars.

Bitcoin ETFs have seen outflows for weeks

Whether the latest diplomatic progress between the United States and Iran can bring lasting calm to markets should become clear in the coming days. On Friday, delegations from both countries are expected to meet in Switzerland and begin talks on Iran’s nuclear program.

Conclusion:
The crypto market remains under pressure despite diplomatic progress in the Middle East. Continued ETF outflows and weak risk sentiment show that investors are still cautious, while upcoming U.S.-Iran talks may determine whether broader market confidence can recover.