Sentiment improved after US President Donald Trump said the war involving Iran could end soon.
Bitcoin rebounded above $70,000 during Asian trading on Tuesday, as risk appetite returned after President Donald Trump said the ongoing US-Israel war with Iran could soon end.
The world's largest cryptocurrency was up 3.4% at $70,201.3 by 9:02 a.m. (05:02 GMT), having hit a high of $70,558.4 earlier in the session.
Bitcoin briefly fell to around $65,000 in the previous 24 hours, as investors shied away from riskier assets amid a surge in oil prices, raising concerns about global inflation. Trump Says War with Iran Ends, Risk Appetite Improves
Sentiment improved after US President Donald Trump said the war involving Iran could end soon, helping calm financial markets that had been jittery about the prospect of a protracted regional conflict.
Trump said the situation could be resolved, though he cautioned that it was unlikely to happen this week. He also warned that the US would respond "20 times more forcefully" if Iran attempted to close the strategic Strait of Hormuz, a key route for global oil supplies.
Oil prices retreated to around $90 per barrel on Tuesday after a sharp jump to nearly $120 per barrel on Monday, easing concerns about a surge in global inflation that weighed on financial markets earlier this week.
Asian stock markets recovered on Tuesday. Major regional indices pared some of the previous session's losses after sharp declines on Monday.
The positive sentiment followed a rally on Wall Street overnight. Cryptocurrency markets followed the improvement in overall risk appetite. However, traders remain cautious as events in the Middle East continue to impact commodity prices and global market sentiment.
Investors now await the release of the US Consumer Price Index for January on Wednesday, while the Personal Consumption Expenditures Index for February – the Federal Reserve's preferred measure of inflation – is expected on Thursday.
Cryptocurrency Prices Today: Altcoins Rise in Range-Based Trading
Most altcoins rose on Tuesday, but traded in tight ranges.
The world's second-largest cryptocurrency, Ethereum, rose 1.8% to $2,046.92.
The world's third-largest cryptocurrency, XRP, rose 2.3% to $1.38.
Solana rose 3%, and Cardano added 1.2%, while Polygon traded mostly flat. Among meme tokens, Dogecoin rose 0.6%.