Bitcoin climbed back above the $70,000 level on Tuesday, as investor sentiment improved after U.S. President Donald Trump suggested that the ongoing conflict between the United States, Israel, and Iran could end sooner than expected.
The world’s largest cryptocurrency rose 3.7% to $71,426 by 11:04 ET (15:04 GMT), recovering from recent losses as risk appetite returned to global markets.
Just a day earlier, Bitcoin had briefly dropped toward $65,000, as investors moved away from riskier assets following a sharp surge in oil prices. The spike in crude prices had raised fears that inflation could accelerate globally, putting pressure on financial markets.
Trump comments lift market sentiment
Market confidence improved after President Donald Trump indicated that the war involving Iran might conclude in the near future. His remarks helped calm markets that had been shaken by the possibility of a prolonged conflict in the Middle East.
Trump said a resolution to the conflict was possible, although he cautioned that it would likely not happen within the current week. He also warned that the United States would respond “20 times harder” if Iran attempted to block the Strait of Hormuz, a critical shipping route through which a significant portion of the world’s oil supply passes.
Meanwhile, oil prices retreated to around $90 per barrel on Tuesday, after surging close to $120 per barrel the day before. The decline eased concerns that higher energy costs could trigger a fresh wave of global inflation, which had weighed on investor sentiment earlier in the week.
Asian stock markets rebounded following Monday’s selloff, with major regional indices recovering part of their previous losses. The positive momentum followed gains on Wall Street, which helped improve overall market confidence.
Cryptocurrency markets moved in line with the broader risk-on sentiment. Nevertheless, traders remain cautious as geopolitical developments in the Middle East continue to influence oil prices and global financial markets.
Investors are now closely watching upcoming U.S. inflation data. The January Consumer Price Index (CPI) report is scheduled for release on Wednesday, while the February Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, will be published on Thursday.
Altcoins move higher but remain range-bound
Most major altcoins posted gains on Tuesday, although price movements remained relatively limited.
Ethereum, the second-largest cryptocurrency by market capitalization, rose about 3% to $2,085.08.
XRP, the third-largest cryptocurrency, jumped 5.3% to $1.43.
Among other major tokens, Solana gained 3.5%, Cardano advanced 5.5%, and Polygon edged 1.3% higher.
In the meme coin sector, Dogecoin surged more than 8%, outperforming most major cryptocurrencies during the session.
