Bitcoin remained relatively stable on Thursday, following strong gains driven by improving market sentiment and optimism around cryptocurrency regulation. However, ongoing geopolitical tensions related to the conflict involving the United States, Israel, and Iran continued to create uncertainty in global markets.
The world’s largest cryptocurrency rose more than 5% to $72,366.1 at 01:28 ET (06:28 GMT) after reaching a one-month high of $73,243 on Wednesday. Despite the rally, Bitcoin gave back part of its gains as U.S. stock index futures turned negative early Thursday, reflecting renewed caution among investors.
The escalation of hostilities in the Middle East has kept financial markets on edge. At the same time, rising oil prices have increased concerns about potential inflation pressures, which could influence broader market sentiment and risk assets such as cryptocurrencies.
Bitcoin rises on stronger risk appetite and political support
Bitcoin’s rally accelerated on Wednesday as positive momentum on Wall Street boosted investor risk appetite. The cryptocurrency also benefited from bargain buying after experiencing sharp losses in February.
Another factor supporting the crypto market was U.S. President Donald Trump’s call for the quick passage of a comprehensive cryptocurrency market framework bill. Trump also criticized major U.S. banking groups for opposing yield payments on stablecoins.
His remarks increased expectations that the U.S. regulatory environment could become more supportive of digital assets. However, there has been limited immediate progress toward approving the CLARITY Act, a proposed law aimed at creating clearer market rules for the cryptocurrency industry.
Earlier optimism in global markets was partly driven by reports suggesting Iran was seeking dialogue with Washington, which raised hopes for a possible de-escalation of the conflict.
Those hopes faded after Iran denied the reports and launched additional missile strikes on Israel early Thursday, reinforcing uncertainty and limiting further gains in risk assets.
Ray Dalio questions Bitcoin’s safe-haven status
Billionaire hedge fund manager Ray Dalio also renewed his criticism of Bitcoin earlier this week, arguing that the cryptocurrency should not be compared with gold.
Dalio said Bitcoin lacks several characteristics that traditionally define a reliable store of value, including central bank backing, strong privacy protections, and resistance to technological threats such as quantum computing.
“A lot of attention has been given to Bitcoin, but as a money, it is small compared with gold,” Dalio said, emphasizing that gold remains the dominant global store of value.
Speaking on a podcast, the Bridgewater Associates founder questioned Bitcoin’s ability to act as a true safe-haven asset and raised concerns about potential privacy vulnerabilities.
Despite his criticisms, Dalio acknowledged in 2025 that he personally holds about a 1% allocation to Bitcoin in his portfolio and has previously suggested that investors could consider allocating around 15% to Bitcoin or gold amid growing concerns about a potential U.S. debt crisis.
Altcoins follow Bitcoin higher
The broader cryptocurrency market also moved higher on Thursday, largely following Bitcoin’s upward momentum as investors recovered part of the losses recorded in February.
The second-largest cryptocurrency, Ether, jumped 7.5% to $2,128.35, while XRP climbed 4.7% to $1.4238.
Other major digital assets also recorded gains, with Solana, Cardano, and BNB rising between 3% and 7%.
Among meme-based cryptocurrencies, Dogecoin surged about 8%, while the $TRUMP token gained roughly 2.2%.
