The Trump team saying they want to negotiate with Iran at this time has three key benefits for the cryptocurrency space:
1. Iran may be more willing to use Bitcoin to counter the US dollar
Iran has been sanctioned for so many years and has already been secretly using cryptocurrencies to bypass the US dollar. If this negotiation eases the sanctions, Iran may more openly use Bitcoin and stablecoins for foreign trade, directly bringing new demand to the crypto space. In the long run, this is a good opportunity to undermine the US dollar.
2. The Federal Reserve may cut interest rates earlier, making money cheaper
If the US and Iran reach an agreement, the return of Iranian oil could lower oil prices, which would reduce inflation and make it more likely for the Federal Reserve to cut interest rates. After a rate cut, the attractiveness of traditional markets would decrease, and some capital could flow into high-risk assets like cryptocurrencies, especially if spot ETFs are approved, institutional funds will enter the market more readily.
3. Geopolitical risks can create topics for discussion, and Meme coins may follow the trend
Trump's negotiations are in themselves a "smoke screen," possibly aimed at diverting domestic conflicts or creating momentum for the upcoming election. Regardless of whether it succeeds or not, the crypto space can take the opportunity to speculate: if negotiations break down, risk-averse sentiment may push up Bitcoin; if they succeed, funds may shift from gold to cryptocurrencies. This uncertainty can create topics for discussion, especially related to Trump’s Meme coins (like $MAGA), which could be wildly traded by short-term funds at any time.
Keep a close eye on Iran's on-chain activities, Federal Reserve policies, and the pace of the Trump team's negotiations; these could be the trigger for the next wave of market action.
