Bitcoin rose on Tuesday, continuing its recent recovery, with inflows into exchange-traded funds (ETFs) signaling a partial recovery in institutional demand.
However, the escalating conflict between the US and Iran capped overall gains in the cryptocurrency market, which remains mired in significant losses since the start of 2026.
Bitcoin rose 2.6% to a two-week high of $65,755.4 by 9:00 AM Moscow time.
Bitcoin ETFs See Two Weeks of Inflows
Spot Bitcoin ETFs have seen two consecutive weeks of inflows, as the sharp decline in cryptocurrency prices attracted institutional investors who saw an opportunity to buy at bargain prices.
Increased volatility in artificial intelligence stocks also contributed to a flow of funds back into cryptocurrency, especially amid significant losses in leading chip makers. According to the aggregator SoSoValue, Bitcoin ETF inflows have totaled $75.7 million and $197.4 million, respectively, over the past two weeks.
Tensions Rise Around Iran, but Hopes for Mediation Rise
On Monday, the US and Iran exchanged strikes for the tenth consecutive day, with Washington escalating its attacks following the deaths of three service members over the weekend.
Tehran continues to keep the Strait of Hormuz closed, while Washington maintains a naval blockade of Iran and continues airstrikes against the country.
This week, markets have seen some hope for a resolution to the conflict, with regional mediators reportedly presenting a new peace proposal to Iran. Optimism for de-escalation has also been bolstered by statements from Iranian and US officials expressing hope for a possible resumption of peace talks. However, the war shows no signs of ending soon: the Iranian-backed Houthi rebel group in Yemen is threatening to open a new front by imposing a naval blockade on Saudi Arabia.
Meanwhile, oil prices fell from five-week highs on Tuesday, somewhat easing fears of accelerating inflation due to rising energy prices.
Crypto Market Today: Altcoins Recover Following Bitcoin
The broader cryptocurrency market rose in line with Bitcoin, although the losses of recent weeks remain significant.
Ether, the second-largest cryptocurrency by market capitalization, rose 4.6% to $1,934.71, while XRP also gained 4.6%.
Solana rose 3.9%, Cardano added 9.2%, and BNB rose 2.1%.
Dogecoin and $TRUMP each rose 2.5%.