Bitcoin rebounds 1.5% as US-Iran deal hopes add $526.6 million ETF inflow

Diplomatic developments factor into market reactions

Sources with knowledge of ongoing talks revealed that Qatar and Pakistan had presented a compromise proposal to representatives in Washington and Tehran. Pakistani army chief Asim Munir delivered the proposal during a visit to Tehran, aiming to foster concessions between both parties and restore mutual trust after recent hostilities.

According to the proposal, Iran would allow a secret International Atomic Energy Agency inspection of its nuclear facilities, while the United States would grant Iran access to interest accrued on $6 billion in frozen funds held in Qatar. However, this would not include the release of the full sum, which remains a key demand for Tehran. The United States continues to insist on addressing Iran’s nuclear program before making further concessions.

Market observers noted that the recent peace report sparked a 1.5% rebound in Bitcoin, while Ethereum rose by about 2.5% and XRP advanced approximately 3%. These gains reflected investor optimism but did not confirm a breakthrough in diplomatic relations.

Walter Bloomberg, known as DeItaone, highlighted that although Iran-US negotiations are ongoing, direct claims about a nearing agreement are inaccurate. This distinction underscores continuing uncertainty over nuclear talks, frozen funds, and the status of Strait of Hormuz shipping routes.

Lingering challenges and geopolitical pressures

Despite positive feedback on the latest proposal, unresolved issues remain. Washington’s calls for nuclear program discussions from the outset clash with Tehran’s conditions for relief from naval blockades, oil sales restrictions, and access to frozen assets as a prerequisite.

Senior Iranian officials continue to report growing mistrust toward US commitments, highlighting fears of renewed military strikes and attempts to exert political pressure ahead of the US elections. The complexity of sequencing and content has left prospects for a final agreement unclear.

After initial optimism, an update reiterated that reports of an imminent deal were unfounded, further emphasizing the difference between active negotiations and concrete results.

Economic impact and institutional flows

Geopolitical concerns in the Strait of Hormuz have continued to generate volatility in both commodities and digital assets. An explosion reported by Iranian Revolutionary Guard navy following a tanker incident emphasized the risks associated with shipping in the region. On October 19, regional stock markets declined due to growing shipping concerns, while Brent crude oil fell by 1.32% to $108.41 per barrel as market participants locked in profits after a loosening of US restrictions on Russia.

Prolonged conflict and continued energy supply disruptions could further strain regional economies, according to the IMF, which has warned of mounting inflation risks as fiscal buffers tighten. In this environment, the interplay between global events, inflation, and risk appetite becomes increasingly important for Bitcoin’s position as an alternative asset. A durable US-Iran agreement could ease uncertainty over energy supply and regional market stability if achieved.

Meanwhile, institutional activity has remained significant in digital asset markets. US Bitcoin spot ETFs attracted net inflows of $526.6 million on Monday, with BlackRock’s iShares Bitcoin Trust accounting for $665.16 million, marking its largest daily inflow since October 7, 2025. Ethereum vehicles, in contrast, saw continued outflows, losing $103.3 million over four consecutive days.

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Institutional engagement in spot Bitcoin ETFs and ongoing diplomatic uncertainty combined to shape recent market movements, with risk appetite influenced by headlines and capital flows.