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Is Trump going to sit at the same table with Li Hongzhang?
The Iranian president has announced that the US and Iran will sign a memorandum of understanding on the 19th.
The market's initial reaction is definitely positive, after all, as long as the Middle East stabilizes, risk aversion will decrease, oil prices will face less pressure, and the Fed's rate cut expectations will rise, benefiting risk assets including BTC.
But I think it's not that simple.
The US's core demands for Iran haven't changed over the years—nuclear issues, missile issues, regional influence—none of which are easy to negotiate.
If Iran's conditions were so easy for the US to agree to, then Trump might really be sitting at the same table with Li Hongzhang.
So now it seems more like both sides are showing goodwill rather than reaching an agreement.
The market can initially rise on expectations, but the real determinants are what will be signed on the 19th, who makes concessions, and how much.
For the crypto world, the biggest positive is not the signing itself but that the Middle East doesn't escalate further;
The biggest negative is not the failure of negotiations but that the market has already priced in all expectations in advance.
Recently, I prefer to interpret this wave of market movement as trading "peace expectations" rather than trading "peace outcomes."
But in the short term, it should be positive, after all, both sides are unlikely to turn hostile so quickly.