This story was updated at 10:35 a.m. ET to reflect Tsipras' comments on public television and the end of negotiations until the upcoming referendum.
At one point on Wednesday, it seemed like a resolution to the most recent round of the Greek debt crisis was at hand.
Then it wasn't.
Despite all the theatrics, Greece is one the same path as it has been for weeks -- headed toward a default on its debt that can only be avoided by a bailout from Europe's financial institutions.
Stock markets in Europe and the U.S. surged higher early in the day following a Financial Times report that Greece would accept all the bailout demands of creditors bar a few changes, including maintaining a discount on sales taxes on the Greek islands.
That enthusiasm would prove short lived. Hours later, the concessions that Tsipras requested were rejected, leading the prime minister to a sudden shift in tone.
You're being blackmailed & urged to vote Yes to all of institutions' measures without any solution to exiting the crisis. #dimopsifisma #OXI— Alexis Tsipras (@tsipras_eu) July 1, 2015
It now appears negotiations have ceased ahead of Greece's referendum vote on Sunday, which will decide whether the country will accept a new round of austerity measures. If the country votes "no" -- rejects the proposed budget cuts and other measures -- it will appear inevitable that Greece will default on its debt, a major step toward the country abandoning the euro as its currency.
The good news came in the form of a two-page letter sent to Greece's creditors on Tuesday. It was quickly taken as a sign that Tsipras appeared to be making big concessions in a request for a new bailout deal.
The concessions he demanded, however, were not well received by the rest of Europe. Tsipras asked that the change of the retirement age to 67 be pushed back to October 2022 instead of right away. He also asked for a solidarity grant to be awarded to poorer pensioners, to be phased out in December 2019, the Financial Times reported.
Here's the full Tsipras letter. http://t.co/3CMYTO6nmc pic.twitter.com/jwiKPhxDpr— Bloomberg Markets (@markets) July 1, 2015
However, speaking on Greek national television Wednesday, Tsipras says he fully intends to go forward with the referendum. He is still urging the Greek people to vote "no" -- against the bailout plan proposed by the country's creditors.
Tsipras is still on with the #greferendum, asks even more persuasively from the Greek people to vote NO. Dividing the entire country.— The Greek Analyst (@GreekAnalyst) July 1, 2015
According to Tsipras, the country's creditors offered a better deal after the referendum call. He also promised that the bank deposits of Greek people will not be lost.
A popular verdict is much stronger that the will of a Government. #Greece #Greferendum #OXI #dimopsifisma— Alexis Tsipras (@tsipras_eu) July 1, 2015
Come Monday, the Greek government will be at the negotiating table after the #referendum, w/better terms for the Greek people. #dimopsifisma— Alexis Tsipras (@tsipras_eu) July 1, 2015
After the #referendum was announced, better proposals were received- especially in regards to restructuring the debt. #Greferendum #Greece— Alexis Tsipras (@tsipras_eu) July 1, 2015
Traders responded positively to the letter published by FT, thinking that it could form the basis of a new deal between Greece and its creditors that would prevent a messy Greek exit from the euro.
The Stoxx 50 index of leading European shares was up 2.6% at 9:55 ET, while Germany's DAX jumped 2.8%. Shortly after opening, Dow Jones and Nasdaq were up about 1%.
It's unclear, however, if the bailout deal is still on the table, since it expired Tuesday, and Greece defaulted on a $1.8 billion payment to the International Monetary Fund.
German finance minister Wolfgang Schäuble dismissed the letter as basis for any serious negotiation, saying it "lacks clarity."
"There is no basis to have serious negotiations with Greece at moment," he said.
Schäuble responds to latest #Tsipras letter: "Accepting something, rejecting something - doesn't exist anymore," as prog already expired.— Open Europe (@OpenEurope) July 1, 2015
He added that with Greece's bailout having expired Tuesday, "we cannot simply act as though" the program was still in place.
German chancellor Angela Merkel also rejected any possibility of negotiation with Greece before Sunday's referendum.
She told the German Parliament Wednesday that the "door to talks with the Greek government was always open and will stay open," but the talks were ended when Tsipras called the referendum, which she called Greece's "legitimate right."
Merkel: We are awaiting #Greferendum ' before there' there will be no negotiations for a 3rd programme for #Greece.— Open Europe (@OpenEurope) July 1, 2015
French president Francois Hollande, however, thinks a deal is still possible, according to Reuters.
“It is our duty to keep Greece in the euro zone. That depends on Greece ... But it also depends on us. As a European I don’t want the dislocation of the euro zone, I am not into intransigent comments, into brutal rifts,” said Hollande.
Eurozone finance ministers have scheduled a conference call at 11:30 a.m. ET to discuss Tsipras' proposal.
Associated Press contributed reporting