Bitcoin price reclaimed the $76,000 mark on Tuesday as investors await confirmation of a potential peace deal between the U.S. and Iran.

According to data from crypto.news, Bitcoin ($BTC) price rose 2% to an intraday high of $76,483 on Tuesday before stabilizing around $76,150 at press time.

Bitcoin edged higher today as investors bought the dip in its price below $74,000 on Monday after reports emerged that Iran may not be attending the emergency peace summit with the U.S. in Islamabad, as the U.S. continues to place its naval blockade on Iranian traffic moving through the Strait of Hormuz.

On Monday, tensions between the two nations escalated after the U.S. intercepted and seized an Iranian ship carrying military supplies, following which Iran retaliated with its own targeted missile strikes against regional naval assets.

Geopolitical risks cloud outlook as U.S.-Iran deal remains uncertain

As such, diplomatic efforts to end the US-Israel war on Iran remain uncertain, with Tehran saying it will not negotiate on a deal with the U.S. under its terms or under a constant military threat.

While U.S. President Donald Trump has called for a final negotiation deadline by Tuesday, he extended the timeline to Wednesday evening Washington time for further diplomatic deliberations.

Despite his repeated claims that Iran is ready to sign on a deal, sources from within Tehran have suggested otherwise, with officials stating they will agree only if a deal is made under specific conditions set by Iran.

Earlier, Iran had asked for several concessions, including billions in reparations for wartime damages to the nation’s infrastructure and the right to continue its uranium enrichment for peaceful energy purposes. However, the U.S. has firmly opposed Iran possessing any form of nuclear power, with Trump noting that such capabilities are a non-negotiable red line.

Trump has indicated that there may not be a further extension of the deadline after tomorrow if Iran fails to cooperate fully with the proposed terms.

The ongoing conflict has left the Strait of Hormuz blocked for over ten days, effectively cutting short global energy supplies, with economists warning that a continued stalemate could lead to a global recession.

Despite no concrete signs of whether Iran would go with the U.S. proposal, Bitcoin price has benefited from dropping crude oil prices today. Notably, WTI crude oil fell back to $86 while Brent crude prices retracted to under $95. Meanwhile, the bellwether cryptocurrency has also benefited from a potential investor capital rotation from gold, which has fallen significantly today.

For many traders, the outlook for Bitcoin price is largely tied to how successfully the deal will play out tomorrow. If a potential deal is reached, Bitcoin bulls could target a rally toward $80,000 in the coming days.

On the contrary, if Iran continues to resist diplomatic terms, $BTC could drop below the $75,000 major psychological support. This could further erode investor confidence and trigger a potential mass liquidation event across the broader crypto market.