Bitcoin prices climbed back above the $70,000 mark for the first time in four days as worries surrounding the conflict with Iran eased after remarks from US President Donald Trump.
The world’s largest cryptocurrency rose as much as 2.32% to $70,581 in early Asian trading on Tuesday, advancing alongside global equities, while oil prices declined. The rebound followed after Trump indicated that the conflict could be resolved “very soon.”
Other digital assets also moved higher, though gains were relatively modest. Ether, the second-largest cryptocurrency, climbed up to 1.3%, while XRP and Solana advanced as much as 1.4% and 1.2%, respectively.
Why is Bitcoin rising?
The upward move came after oil prices retreated below $100, US equity markets rebounded, and the sentiment improved towards riskier assets. Markets initially shifted to a risk-off mode early Monday as disruptions in the Strait of Hormuz pushed key oil benchmarks, WTI and Brent, above $100 for the first time in years.
Bitcoin also fell along with other risk assets during the initial shock but soon stabilised around the mid-$60,000 level — aided by Wall Street’s relative insulation from the energy crisis — before rising again as investors absorbed the geopolitical developments.
According to Avinash Shekhar, Co-Founder & CEO, Pi42, institutional conviction remains visible. Large-scale accumulation, such as Strategy’s recent purchase of nearly $1.3 billion worth of Bitcoin, indicates that long-term players are continuing to build exposure during periods of uncertainty.
Shekhar noted that broader macro dynamics could also play a supportive role.
“Rising government borrowing and deficit-driven spending during prolonged geopolitical tensions could expand liquidity and weaken fiat currencies, factors that historically tend to strengthen the investment case for alternative assets like Bitcoin,” he said.
Bitcoin prices outlook
Shekhar further added that the market’s direction will likely hinge on liquidity expectations and upcoming macro data, such as the US inflation data.
“If inflation moderates and rate cut expectations strengthen, it could provide a supportive backdrop for Bitcoin to push back toward the $74,000 to $75,000 range in the near term,” he said.
On the other hand, Riya Sehgal, Research Analyst, Delta Exchange, believes that if BTC hold above 70000, a move toward the $71,000–$73,000 resistance band could unfold.
“Early signs of capital rotation are emerging as inflows into Bitcoin investment products resume while some profit-taking appears to be occurring in gold. That said, volatility is likely to remain elevated as investors closely monitor upcoming U.S. inflation data and other macroeconomic signals that continue to influence risk asset flows,” Sehgal said.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.