Cryptocurrency prices are up sharply on April 6 amid media reports that the U.S. and Iran are engaged in meaningful ceasefire talks.
Bitcoin (BTC), the largest cryptocurrency, is up 3% and trading at $69,500.00 U.S. as traders and investors react positively to signs of a possible de-escalation in the Iran war.
Ethereum’s (ETH) price is up 4% and trading at $2,150 U.S. while prices for Solana (SOL) and XRP (XRP) are also up between 3% and 4%.
The move higher in crypto prices comes amid reports that the U.S. and Iran are discussing a potential 45-day ceasefire.
The reports have raised hopes that hostilities could ease and that crude shipments will resume in the Strait of Hormuz waterway near Iran, where about 20% of the world’s oil is transported.
There are reports that officials from Pakistan are brokering what’s being called the “Islamabad Accord” between the U.S. and Iran.
Under the potential deal that’s being negotiated, a ceasefire would take effect immediately and the Strait of Hormuz would be reopened.
A potential ceasefire is welcome news for financial markets around the world as oil prices remain high and central banks are expected to keep interest rates elevated to counter inflation.
If a ceasefire materializes and the conflict winds down, a relief rally could further benefit risk assets such as cryptocurrencies in the weeks ahead, say analysts.
Bitcoin has declined from an all-time high of $126,000 U.S. reached last October.
