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Bitcoin climbed back above the $70,000 mark in Asian trading on Tuesday as investor sentiment improved after U.S. President Donald Trump suggested the ongoing conflict involving the United States, Israel, and Iran could end soon.
The world’s largest cryptocurrency rose 3.4% to $70,201.3 by 01:02 ET (05:02 GMT), after touching an intraday high of $70,558.4 earlier in the session.
Bitcoin had briefly fallen to around $65,000 over the previous 24 hours as investors moved away from riskier assets amid a surge in oil prices that triggered concerns about rising global inflation.
Hopes of conflict resolution boost sentiment
Market sentiment improved after Trump said the war involving Iran could potentially end soon, easing fears of a prolonged regional conflict that had shaken financial markets.
Trump indicated that the situation could eventually be resolved, although he cautioned that a resolution was unlikely to occur within the current week.
At the same time, he warned that the United States would respond “20 times harder” if Iran attempted to shut the Strait of Hormuz, a critical global shipping route through which a significant portion of the world’s oil supply passes.
Oil retreat helps markets recover
Oil prices pulled back to around $90 per barrel on Tuesday after surging close to $120 per barrel on Monday, helping reduce fears of a sharp spike in global inflation that had pressured financial markets earlier in the week.
The retreat in energy prices helped improve risk appetite across global markets.
Asian equities also rebounded during the session, with major regional indices recovering part of the losses suffered during Monday’s sharp selloff. The improvement followed gains on Wall Street overnight, signaling a broader recovery in market sentiment.
Cryptocurrency markets moved in tandem with the shift in risk appetite, although traders remain cautious as geopolitical developments in the Middle East continue to influence global financial markets.
Altcoins post modest gains
Most major cryptocurrencies also advanced on Tuesday, though price movements remained relatively contained.
- Ethereum, the world’s second-largest cryptocurrency, rose 1.8% to $2,046.92
- XRP gained 2.3% to $1.38
- Solana climbed 3%
- Cardano added 1.2%
- Polygon traded largely unchanged
Among meme tokens, Dogecoin edged 0.6% higher.
Key U.S. inflation data ahead
Investors are now closely watching upcoming U.S. economic data that could shape expectations for Federal Reserve policy.
The U.S. consumer price index (CPI) for January is due on Wednesday, followed by the February personal consumption expenditures (PCE) price index on Thursday, the Federal Reserve’s preferred measure of inflation.
These reports are expected to provide further clues about the trajectory of inflation and the potential timing of future interest rate adjustments.
