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Iran-US peace deal could reduce Bitcoin's short-term crisis demand but boost long-term use as Gulf shifts from dollar.

Market News
25 May 2026
Crypto news
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Neutral
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US and Iranian negotiators are close to a memorandum of understanding (MOU) that would end current hostilities, reopen the Strait of Hormuz, and start talks on nuclear limits and sanctions relief. This peace deal is expected to lower immediate geopolitical risks, which may reduce Bitcoin's appeal as a crisis hedge in the short term. However, over the longer term, easing sanctions and a more multipolar Gulf could encourage states to diversify reserves away from the US dollar toward Bitcoin and stablecoins, increasing demand for crypto as a strategic asset. The deal signals a shift toward a fragmented regional order where digital assets gain importance in sovereign financial strategies.

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