Bitcoin climbed back above the $70,000 level during Asian trading on Tuesday, as market sentiment improved after comments from U.S. President Donald Trump suggested that the ongoing conflict involving Iran could end soon.
The world’s largest cryptocurrency rose about 3.4% to $70,201.3 by 01:02 ET (05:02 GMT). Earlier in the session, Bitcoin briefly reached a high of $70,558.4.
Just a day earlier, Bitcoin had dropped to around $65,000 as investors moved away from riskier assets. The decline came as oil prices surged, fueling concerns that rising energy costs could trigger higher global inflation.
Trump Comments Boost Market Sentiment
Investor confidence improved after President Donald Trump indicated that the conflict involving Iran might be resolved in the near future. His remarks helped ease fears of a prolonged geopolitical crisis that had recently shaken global markets.
Trump said a resolution to the conflict could be possible, although he warned that it was unlikely to happen within the current week. He also stated that the United States would respond “20 times harder” if Iran attempted to close the Strait of Hormuz, one of the most critical routes for global oil shipments.
Oil prices pulled back to around $90 per barrel on Tuesday after surging close to $120 a barrel the previous day. The retreat helped calm concerns that a spike in energy prices could accelerate global inflation.
Global Markets Recover as Risk Appetite Returns
Asian stock markets rebounded on Tuesday as investors regained confidence following the easing in oil prices. Major regional indices recovered part of the losses recorded during Monday’s sharp sell-off.
The positive momentum also followed gains on Wall Street overnight, which supported a broader improvement in global market sentiment.
Cryptocurrency markets mirrored the recovery in risk appetite. However, traders remain cautious as geopolitical developments in the Middle East continue to influence commodity prices and financial markets.
Investors are now focusing on key upcoming U.S. inflation data. The January Consumer Price Index (CPI) report will be released on Wednesday, followed by the February Personal Consumption Expenditures (PCE) price index on Thursday, which is the Federal Reserve’s preferred measure of inflation.
Altcoins Rise but Remain Range-Bound
Most major altcoins also posted gains on Tuesday, although trading activity remained relatively range-bound.
Ethereum, the second-largest cryptocurrency by market value, rose 1.8% to $2,046.92.
XRP, the third-largest digital asset, gained 2.3% to reach $1.38.
Solana climbed about 3%, while Cardano advanced 1.2%. Polygon remained largely unchanged during the session.
Among meme cryptocurrencies, Dogecoin recorded a modest gain of 0.6%.
