Bitcoin climbed above $83,000 on October 20 as reports of a potential US-Iran peace deal lifted investor sentiment. However, conflicting accounts raised doubts about whether Washington and Tehran were close to reaching an agreement to end the war.
Market analyst Ash Crypto reported that Washington and Tehran had reached a deal, while also noting a sharp market reaction. US stocks reportedly gained $630 billion in 35 minutes as oil prices fell on hopes of easing regional tensions.
Bitcoin Rallies as Crypto Liquidations Rise
Crypto markets recorded $297.36 million in liquidations over 24 hours, according to CoinGlass data. Short positions accounted for $170.81 million, compared with $126.55 million in long positions. The liquidations affected 67,510 traders.
Ethereum accounted for $100.70 million in liquidations, while Bitcoin saw $76.48 million and Solana $14.38 million. The largest individual liquidation occurred on Binance, where an $11.96 million BTCUSDT short position was closed.
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US stocks also moved higher. Eli Lilly shares rose 5.18%, followed by Oracle at 2.52% and Morgan Stanley at 2.31%. Oil prices moved in the opposite direction, with West Texas Intermediate crude slipping toward $95.65 after briefly topping $100. The US Dollar Index also fell to around 101.55.
Conflicting Reports Cloud Peace Deal Prospects
Reports indicated that Pakistan’s army chief had presented a proposal to end the conflict. Washington reportedly approved the plan, while Tehran provisionally accepted it.
The proposal reportedly included transferring interest earned on $6 billion in frozen Iranian funds held in Qatar. It also included a confidential International Atomic Energy Agency visit to Iranian nuclear facilities.
However, Qatar’s Foreign Ministry said negotiations were continuing. Walter Bloomberg later cited a source familiar with the talks who disputed claims that Washington and Tehran were close to an agreement. The source confirmed ongoing discussions but provided no timeline for a deal.
Previous Negotiations Face Further Obstacles
Pakistan previously helped broker an April ceasefire and facilitate a June memorandum outlining further negotiations. The framework covered maritime access, sanctions relief, and Iran’s nuclear program.
A 60-day deadline to release about $24 billion in frozen Iranian assets expired in August without an extension. Iran has also maintained restrictions on the Strait of Hormuz and demanded that Washington lift its naval blockade.
Conflicting accounts leave the prospects for an agreement uncertain. Progress on the negotiations could influence oil prices and broader market sentiment.
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