Key Takeaways:
Bitcoin (BTC) fell 3.5% to $67,850 in afternoon trading on Saturday, April 25, after former U.S. President Donald Trump abruptly canceled a planned trip by American envoys to Pakistan for peace talks with Iran.
"The sudden cancellation triggered a wave of long liquidations, totaling $158 million across major exchanges in the past 12 hours," data from Coinglass shows, as of 18:00 UTC. "Funding rates for perpetual futures have flipped negative, indicating bearish sentiment."
The American delegation, including senior envoys Jared Kushner and Steve Witkoff, was scheduled to meet with Iranian representatives in Islamabad. Trump announced the reversal on his Truth Social platform, stating, “I just cancelled the trip...Too much time wasted on travelling, too much work! We have all the cards, they have none!”
The move injects significant uncertainty back into global markets, threatening to unwind a fragile truce in the Middle East. For Bitcoin, the breakdown in diplomacy removes a potential de-risking catalyst, pushing the price back toward the key technical support level at $65,000.
The cancellation derails a weekend of planned negotiations aimed at finding a permanent peace deal. Tensions remain high over a U.S. naval blockade of the Strait of Hormuz, a critical chokepoint for global oil shipments. Iran has responded with its own blockade and has seized several tankers in recent days, according to reports from Reuters. Oil prices remained volatile on the news.
In a post on X after leaving Islamabad, Iranian Foreign Minister Abbas Araghchi said he had “shared Iran’s position concerning [a] workable framework to permanently end the war,” but had “yet to see if the US is truly serious about diplomacy.” An Iranian diplomatic source stated Tehran would not accept "maximalist demands."
The decision drew immediate criticism. Journalist Glenn Greenwald highlighted the policy reversal, noting that just 24 hours prior, the administration was promoting the talks. America First conservative David Pyne questioned Trump's commitment to ending the conflict, pointing to the continued U.S. naval presence in the region.
The price of Ether (ETH), the second-largest cryptocurrency, also fell 4.2% to $3,450. The broader crypto market downturn reflects a classic risk-off move, as investors shed speculative assets amid rising geopolitical instability.
This article is for informational purposes only and does not constitute investment advice.
