Bitcoin rose alongside Treasury bonds and stock futures after Trump decided to postpone strikes on Iranian power plants and energy infrastructure for five days, Bloomberg reports.
In the initial reaction, the largest cryptocurrency briefly rose to $71,500, before partially retreating to settle around $70,000. Smaller tokens, including Ether and Solana, also rose.
Earlier, Bitcoin hovered near a two-week low, falling to $67,470 during Asian trading. The coin has been volatile since the start of the conflict in Iran: at one point, the price jumped to nearly $76,000, before falling again amid escalating tensions in the region.
Stocks and bonds rebounded after Trump's comments that the US and Iran had held "very good" negotiations to end the war. S&P 500 futures jumped nearly 3%, while Brent crude oil fell to $101 per barrel.
The capital flows that had supported Bitcoin's price over the past two weeks weakened by Monday, and inflows into crypto-linked US exchange-traded funds (ETFs) turned into outflows.
"A potential catalyst for market stabilization at this point would be some de-escalation in the Middle East, or at least the resumption of normal shipping through the Strait of Hormuz," wrote analysts at Laser Digital.
"This could trigger a chain reaction: stabilization of oil prices, followed by rate consolidation and improved risk sentiment," they added. "Without this, crypto markets are likely to remain under pressure."