Peace negotiations between the U.S. and Iran failed on April 12, 2026, after 21 hours of talks held in Islamabad, Pakistan. Experts predict this breakdown will likely cause a significant stock market crash when trading begins on Monday.
Cryptocurrencies are expected to be the most affected. We’re already seeing some initial declines, as both Bitcoin and Ethereum have dropped roughly 1.5% in value today.
U.S.-Iran Peace Talks Fail
Vice President JD Vance recently announced that peace negotiations between the U.S. and Iran have stalled. According to Vance, Iran declined to accept the terms proposed by the U.S., and Washington was firm on these conditions, refusing to compromise.
Vance explained that the U.S. needs a firm promise from other nations that they won’t develop nuclear weapons, or the means to do so quickly. He said this was the main objective of President Trump’s negotiations.
Shortly after the news broke, I saw President Trump post on Truth Social, stating Iran wasn’t serious about abandoning its nuclear program. He then directed the U.S. Navy to immediately blockade the Strait of Hormuz. It was a swift and decisive reaction, to say the least.
The situation also threatens a delicate two-week truce and raises concerns that fighting could worsen.
Rising Pressure To Dump Stock Market
With diplomacy failing, traders are now pricing in conflict risk.
Currently, we’re seeing a combination of factors: bonds are being sold off, interest rates are increasing, the value of the dollar is decreasing, and it’s becoming harder to access cash.
Due to ongoing high oil prices – staying above $100 – the Federal Reserve now expects inflation to be 2.7% in 2026, making interest rate cuts less likely. This situation restricts the ability of central banks to boost economic growth.
With all this pressure, stock markets may see heavy selling when trading opens on Monday.
Crypto To Hit Hard, BTC and ETH Both Fall
When economic conditions worsen, cryptocurrencies typically decline in value more sharply than stocks, and we’re seeing that happen now. Bitcoin has already dropped below $71,000, and Ethereum is below $2,200. Overall, the crypto market has lost almost 1%, bringing its total value down to $2.41 trillion.
We’re also seeing this cautious behavior with large Bitcoin investors, known as whales. One whale quickly moved over $10 million worth of Bitcoin as soon as the price fell below $71,000, which many interpret as a signal that the price decline might continue.
Currently, market makers are selling off their holdings, and trading activity—both in terms of open contracts and immediate purchases—is decreasing.
A large Ethereum investor, often called a “whale,” recently made around $11.2 million in profit. They purchased 5,039 ETH for about $1,985 each two weeks ago and then sold 5,000 ETH at $2,202 each, securing a gain on the investment.
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2026-04-13 11:52