- Peace talks between the United States and Iran failed, negatively impacting cryptocurrency assets.

Peace negotiations between the United States and Iran failed in Pakistan, where both sides left Islamabad on Sunday without achieving notable results. U.S. Vice President J.D. Vance and Iranian officials stated that fundamental disagreements still remain amid efforts to reach an agreement that would bring peace to the Middle East.

"We are leaving here with a very simple proposal, which is a way of understanding representing our final and best offer. We will see if the Iranians accept it," J.D. Vance said at a press conference after the talks.

Despite the collapse of negotiations, the fragile ceasefire agreement reached last week remains in place. Meanwhile, U.S. President Donald Trump wrote on Truth Social that the United States will impose a blockade on the Strait of Hormuz, which will halt navigation to and from Iranian ports through this vital global shipping lane.

West Texas Intermediate crude oil prices (WTI) rose to around $97.00 at the time of writing, after reaching approximately $86.00 on Wednesday. At least 20% of global oil and gas supplies pass through the Strait of Hormuz, and reopening it could help ease pressure on the global economy.

West Texas Intermediate crude oil price chart

Meanwhile, market sentiment in the cryptocurrency space remains significantly bearish, as evidenced by the Fear and Greed Index, which settled at 12 points in the extreme fear zone on Monday, down from 16 points the previous day. If this downward trend continues, cryptocurrency prices may struggle to sustain their recovery, potentially leading to repeated declines.

Cryptocurrency Fear and Greed Index | Source: Alternative

Additionally, retail investor interest in Ethereum generally remains bearish, as open interest (OI)—which reflects the nominal value of outstanding derivatives contracts—decreased to about $30.00 billion on Monday from $32.27 billion the day before.

Ethereum futures open interest data | Source: CoinGlass

Similarly, demand for XRP derivatives from retail investors continues to decline, with the average open interest for futures contracts at $2.38 billion on Monday, compared to $2.48 billion the previous day. The ongoing decrease in open interest indicates that investors are losing confidence in XRP’s ability to recover and are hesitant to open new positions.

Daily trading data for XRP futures | Source: CoinGlass
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