Bitcoin rebounds above $70K as Oil slump revives risk appetite

Bitcoin climbed back above $70,000 on Tuesday as risk appetite improved after President Trump suggested the conflict with Iran could end sooner than expected. 

BTC recovered from Monday’s low of $65,500, rising around 3.5% over the past 24 hours to a peak near $71,200. Gains were also seen across the broader crypto market. Ethereum rose about 2.5% to trade above $2,050, while Solana climbed roughly 3% to around $85. The total cryptocurrency market capitalisation increased 2.85% to $2.39 trillion. 

The rebound came as markets reacted to comments from Trump in a CBS interview in which he said the war in Iran could end soon and that the US was ahead of its original four-to-five-week timeline. 

Oil prices responded immediately, falling sharply after briefly reaching almost four-year highs near $120 per barrel earlier in the week. The drop in oil eased fears of a prolonged energy shock and reduced concerns that the conflict would push global inflation higher.

Lower oil prices helped push Treasury yields down, improving liquidity conditions for risk assets such as stocks and cryptocurrencies. Equity markets rallied in response, with South Korea’s Kospi jumping 5% and the Euro Stoxx 50 gaining roughly 2%. Although US  futures are unchanged. 

The situation remains fragile. Iran has said it intends to continue fighting, highlighting how sensitive markets currently are to geopolitical headlines. 

For risk appetite to improve more sustainably, investors will likely need to see clearer signs of de-escalation and, crucially, the reopening of the Strait of Hormuz. The waterway handles roughly 20% of global seaborne oil supply, meaning any disruption there can quickly send energy prices higher. Until shipping routes reopen and tensions ease, volatility across markets — including crypto — is likely to remain elevated. 

Institutional and corporate demand support BTC 

Institutional demand is also providing some support. US-listed Bitcoin ETFs recorded net inflows of $167 million on Monday, adding to $568 million of inflows seen last week. After several months of persistent outflows, the return of ETF demand suggests institutional sentiment toward Bitcoin may be improving. 

Corporate buying has added another layer of support. Strategy recently announced the purchase of an additional 17,994 BTC, bringing its total holdings to 738,731 Bitcoin at an average purchase price of $75,862. 

If ETF inflows remain strong and geopolitical tensions ease, Bitcoin could attempt another push higher. But with oil markets still volatile and the Middle East conflict unresolved, traders should expect continued swings in sentiment. 

BTC – Technical analysis 

BTC continues to consolidate within a familiar range of 65k to 71.5k,where it has broadly traded since early February. The price is rising towards the upper end of the range, which combined with the RSI above 50 keeps buyers hopeful of a breakout to the upside. 

Buyers will need to rise above 71.5k to break out, bringing 74k, the March high and 50 SMA into focus. A rise above her creates a higher high, opening the door to 80k, the round number, and the November 21 low. 

Sellers will be looking for a break below 65k to open the door towards 60k.