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Crypto▼ Bearish
US-Iran Deal Political Backlash Puts Bitcoin Rally at Risk
Bitcoin surged to $66,000 after the US-Iran MoU, but the deal faces backlash from Republican allies. Friday's signing is the next test. Fail it and the rally's catalyst disappears.
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Bitcoin hit $66,000 this week as a risk-on wave swept crypto markets after the US and Iran signed a memorandum of understanding to end the war. Major altcoins followed. Uniswap, Worldcoin, Aerodrome Finance, Celestia, and Jito each posted double-digit gains. The rally has a single, concentrated catalyst: the MoU. That catalyst now has a clear vulnerability.
The deal is scheduled for a formal signing ceremony on Friday. Leaked details have already drawn sharp criticism from Republican allies of the US president. The backlash raises the possibility that the MoU could falter before the signing, or that political pressure could undermine it afterward. If the agreement collapses, the primary driver of this week's risk appetite disappears.
The market's reaction to the MoU was swift and broad. Bitcoin jumped from below $64,000 to $66,000 within hours of the announcement. Altcoins with higher beta amplified the move. The move was pure sentiment: no change in monetary policy, no exchange outage, no on-chain shift. The rally was built on the expectation that de-escalation reduces geopolitical uncertainty and supports risk assets, crypto included.