The world’s largest cryptocurrency traded 3.2% lower at $72,845
Bitcoin plunged below $73,000 levels on Thursday, hitting its lowest point in more than six weeks, as report of Iran and U.S. reaching deal to extend ceasefire did little to ease concerns and selloff across cryptocurrency markets.
The world’s largest cryptocurrency traded 3.2% lower at $72,845 by 15:35 GMT, reaching its lowest since mid-April.
Ether, the second-largest token, declined 3.8% to $1,986.62.
An Axios report citing U.S. officials said that Iranian and U.S. negotiators have reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and start negotiations on other issues, but Iran has yet to give its approval.
Investor sentiment deteriorated after reports that the U.S. had carried out a second round of attacks this week, dimming hopes for a near-term peace agreement and pushing oil prices higher again.
Brent crude rebounded above $97 a barrel after tumbling in the previous session on optimism surrounding possible negotiations between Tehran and Washington.
Markets had briefly rallied on Wednesday after Iranian state-linked media reported progress toward a draft framework that could reopen shipping through the Strait of Hormuz. But those hopes somewhat faded after U.S. president dismissed reports that Iran and Oman would jointly oversee shipping operations under a proposed agreement.
Higher oil prices and escalating geopolitical tensions weighed on appetite for riskier assets, including cryptocurrencies, while investors also braced for U.S. inflation data later on Thursday that could influence the interest-rates of the country’s central bank.
Bitcoin was additionally pressured by continued institutional selling and heavy outflows from spot Bitcoin exchange-traded funds.
According to data from SoSoValue, U.S. spot Bitcoin ETFs recorded net outflows of $733.43 million on May 27, marking one of the largest single-day withdrawals in recent weeks.
Crypto-related ETFs have recorded more than $2.5 billion in net outflows over the past two weeks. Analysts also pointed to a reported $1.29 billion dark-pool block trade tied to BlackRock’s iShares Bitcoin Trust ETF, or IBIT, which coincided with Bitcoin’s sharp decline earlier this week.
The latest decline extended Bitcoin’s retreat from highs above $82,000 earlier this month, with traders increasingly concerned that persistent inflation and higher energy prices could keep the country’s interest rates higher for longer.
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