Bitcoin falls below 71,500 USD, U.S.-Iran talks remain deadlocked, and the Strait of Hormuz becomes the biggest point of contention

The two sides of Iran and the U.S. held talks for more than 20 hours in Pakistan on the 11th, with the core sticking point centered on the Strait of Hormuz’s right of passage. At the same time, after Bitcoin climbed above $73,000, it quickly sold off this (12) morning by $71.5k.
(Backgrounder: The U.S.-Iran century talks will appear tomorrow》U.S. vice president Vance sets off for Pakistan: Trump has issued “clear guidance”)
(Additional background: Bloomberg: the U.S.-Iran war’s impact on Bitcoin is limited; it’s trading in a range of $60k to $70k; Hyperliquid contracts are becoming a risk-hedging “barometer”)

On the 12th, around after 3 a.m., Bitcoin (BTC) peaked at $73,800. The timing of this up move closely coincides with the time window when the U.S.-Iran talks were underway, and the market may interpret the start of the negotiations as a positive signal that geopolitical risk is declining.

However, earlier at around 09:30, Bitcoin suddenly plunged downward quickly; the lowest wick reached $71,313. It is currently trading at $71,557, down more than 2% within half an hour.

More than 20 hours of talks; both sides confirm they are still ongoing

On the afternoon of April 11, representatives from both Iran and the U.S. began formal talks at the Serena Hotel in Islamabad, the Pakistani capital. By early on the 12th, senior White House officials confirmed that the talks were “continuing for 20 hours and are still in progress,” and that the negotiations are expected to extend through Sunday.

The U.S. delegation included Vice President Vance (JD Vance), Middle East envoy Witkoff (Steve Witkoff), and Trump’s son-in-law and adviser Kushner (Jared Kushner). Iran’s delegation was led by parliamentary speaker Qalibaf (Mohammad Bagher Qalibaf) and foreign minister Araghchi (Abbas Araghchi). In total, the two sides mobilized more than 370 people, an unusually large scale by diplomatic history standards.

Strait of Hormuz: the biggest bottleneck in the talks

According to a report by the New York Times, the key divergence in this round of negotiations centers on the right of passage through the Strait of Hormuz. The U.S. side is asking Iran to immediately open the strait to freedom of navigation, while Iran insists that it will only be willing to loosen restrictions after both sides reach a comprehensive final agreement.

During the negotiations, however, Trump publicly said that “it doesn’t matter whether an agreement is reached,” and claimed that regardless of the outcome the United States wins, saying it has “militarily defeated Iran.” This tough stance has been interpreted by outsiders as a pressure strategy ahead of the talks, but it has also sparked doubts about the U.S. side’s sincerity.

The reporting stances from Iranian media show clear divergence. Tasnim News Agency (Tasnim), which represents the hardline camp, claims that “the first day of talks has come to an end.” Mehr News Agency (Mehr), which is relatively more moderate, said that the next round of talks will resume “after sunrise,” implying that both sides still have room to continue engaging.

The White House has kept a low profile regarding progress and has not officially disclosed any details.