Bitcoin gains amid hopes for Iran-U.S. negotiations

The world’s largest cryptocurrency gained 2.6% to $73,196.1

Bitcoin added to gains on Monday as risk assets were buoyed by continued hopes for U.S. and Iran negotiations despite failed weekend talks and the start of a naval blockade of the critical Strait of Hormuz.

The world’s largest cryptocurrency gained 2.6% to $73,196.1 by 20:58 GMT.

Negotiators from the U.S. and Iran talked for 21 hours over the weekend but were unable to reach an agreement to solidify an ongoing two-week ceasefire between all warring parties.

The U.S. president on Sunday said a naval blockade would go into effect in the Strait of Hormuz, a vital waterway through which a fifth of the world’s oil and gas flows which has been effectively shuttered by Iran since the start of the conflict in late February.

The president on Monday confirmed that the blockade would go into effect at 14:00 GMT. He reportedly said 34 ships had gone through the strait on Sunday, adding it was by far the highest number since this closure began.

The blockade is likely to herald more military action in the Middle East. A blockade also points to more disruptions in global shipping and energy markets.

While disruptions in shipping and energy have little direct impact on crypto, they stand to disrupt global economic growth – a scenario that can hurt risk sentiment and in turn dent appetite for speculative assets.

In the U.S., risk appetite at the end of last week was also dented by the country’s consumer price index inflation showing a sharp rise in March, largely due to higher energy prices stemming from the Iran war.