Bitcoin slips despite progress on Iran deal

• Crypto markets fell despite reports that the United States and Iran are nearing a formal agreement to extend a ceasefire and reopen key shipping routes.
• Bitcoin and major cryptocurrencies declined as investors focused on interest rates and inflation rather than geopolitical developments.
• The Federal Reserve's decision to keep rates at 3.50%–3.75% continues to weigh on sentiment across risk assets.

Bitcoin (CRYPTO:BTC) and the broader cryptocurrency market moved lower even as reports indicated that the United States and Iran were close to finalising an agreement aimed at extending a ceasefire and reopening the Strait of Hormuz.

The total cryptocurrency market capitalisation fell nearly 2% to US$2.21 trillion as investors remained focused on monetary policy and inflation risks rather than improving geopolitical conditions.

President Donald Trump said a US-Iran agreement could be signed soon, with reports indicating that Vice President JD Vance is expected to attend the formal signing ceremony.

The proposed framework would reopen key Middle East shipping routes and link economic benefits for Iran to compliance with agreed conditions, according to details released by US officials.

Investors continued reducing exposure to risk assets after the Federal Reserve maintained interest rates at 3.50%–3.75%, and following the announcement the Bitcoin price was down during the session.

The Federal Open Market Committee voted unanimously to keep rates unchanged on June 17, extending a policy pause that has remained in place throughout 2026.

Although earlier reports suggested easing tensions could support cryptocurrency prices through lower oil prices and improved risk sentiment, traders appear to be waiting for the agreement to be formally signed before reassessing market conditions.

At the time of reporting, Bitcoin price was $64,440.42.