US President Donald Trump declared on Saturday via Truth Social that a formal agreement to terminate hostilities between the US and Iran is scheduled for signature on Sunday. This announcement directly contradicts previous statements from Tehran, where officials expressed skepticism regarding the immediate timeline. Trump explicitly stated, 'The Deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL.' The proposed memorandum of understanding is designed to extend the current ceasefire for 60 days and lift the naval blockade that has restricted 20% of the global supply of oil and liquified natural gas. This blockade has been a primary driver of elevated global asset prices and a sentiment shock that has pressured crypto markets for months. Data compiled by Woofun AI indicates that the geopolitical tension surrounding the Strait of Hormuz has been a critical variable in recent market volatility.

Pakistan, serving as the mediator for negotiations between Washington and Tehran, reinforced the likelihood of an imminent resolution. Pakistani Prime Minister Shehbaz Sharif posted on X on Saturday, asserting, 'We are closer to a peace deal than ever before.' Sharif noted that finalization is expected within the next 24 hours, with Pakistan preparing for the electronic signing of the peace deal immediately thereafter, followed by technical-level talks the subsequent week. Despite this optimism from the US and the mediating party, the Iranian government has not confirmed the Sunday signing date. Iranian Foreign Ministry spokesperson Esmaeil Baghaei told state media that the memorandum would not be signed on Sunday but could occur 'in the coming days.' Baghaei emphasized, 'We will have to wait and see about the exact date of the signing of the memorandum of understanding, although it will not be tomorrow.'

The potential resolution carries significant implications for digital asset markets, particularly for Bitcoin. Crypto analyst Michaël van de Poppe suggested that a peace deal between Iran and the US will likely prompt a surge in Bitcoin prices, accompanied by positive flows into exchange-traded funds. This outlook contrasts sharply with recent market performance, where Spot Bitcoin exchange-traded funds recorded approximately $315.84 million in net outflows for the week ended Friday. This figure marks the fifth consecutive week of outflows for Bitcoin-linked crypto funds, reflecting sustained risk aversion. Woofun AI notes that van de Poppe argues liquidity will pour back into risk-on assets as capital seeks opportunity following the conclusion of the SpaceX IPO, with a significant portion likely flowing towards crypto.

Market dynamics have been heavily influenced by the uncertainty surrounding the Iran conflict, which has weighed on the outlook for interest rates. On Wednesday, James Butterfill, head of research at CoinShares, told Cointelegraph that the recent outflow from digital asset investment products was primarily driven by geopolitics. The ambiguity regarding the duration and outcome of the conflict has created a headwind for institutional capital deployment. At the time of writing, Bitcoin was trading at $64,491, representing a 1.5% increase over the past 24 hours. This modest gain suggests the market is pricing in potential de-escalation while remaining cautious about the conflicting narratives from Tehran and Washington. Woofun AI analysis suggests that the confirmation or denial of the Sunday signing will act as a decisive catalyst for the next major price movement in the sector.