Bitcoin rose more than 5%, approaching $72,000 and reaching its highest level in nearly a month. The coin has since partially retreated, but remains above $70,000.

Ether also surged, up 6.3% to $2,092, and cryptocurrencies overall are showing broad gains.

The world's largest cryptocurrency has endured a turbulent few days since US and Israeli forces attacked Iran on Saturday, with BTC falling as low as $63,038 that day. Investors have since largely shifted to digital assets, with US spot Bitcoin ETFs attracting more than $680 million in inflows on Monday and Tuesday, according to data compiled by Bloomberg.

"The mood in financial markets remains extremely cautious as investors evaluate recent events in the Middle East and brace for further turmoil," said Suzanne Streeter, chief investment strategist at Wealth Club.

Despite Wednesday's recovery, cryptocurrency markets remain tense: Bitcoin is still roughly 40% below its October peak after a prolonged selloff.