Bitcoin (BTC-USD) rose 1% on Tuesday, extending gains from the previous session after President Trump signaled that the US-Israeli war against Iran could end soon.
The benchmark climbed above $71,000 as the stock market rose and oil prices fell after Trump said the conflict with Iran would end “very soon.”
Wall Street is watching oil prices, which remain about $20 a barrel higher than when the war began, for signs of inflation that could delay the Federal Reserve’s rate cuts.
“Crypto markets are advancing even as global assets adjust to higher energy prices and changing price expectations,” wrote Ilya Kulchev, analyst at crypto platform Nexo.
Inflows into spot exchange-traded funds have risen, with net inflows of $568 million recorded last week, according to Bloomberg data, marking the second consecutive positive week after a period of outflows.
Read more about Bitcoin movements and today’s market action.
Meanwhile, Strategy ( MSTR ) rose nearly 2% on Tuesday after B. Riley Securities initiated major coverage of bitcoin treasuries with a buy rating. The company collected another 17,994 bitcoins last week, maintaining its position as the token’s largest public holder.
“With execution steady and large holders continuing to accumulate amid volatility, sustained declines are likely to require a broader deterioration in liquidity conditions,” Kalchief said.
The world’s largest cryptocurrency has shown signs of resilience since the start of the US-Israel war against Iran on February 28. Although it initially fell to $63,000, bitcoin neared $74,000 in the middle of last week as interest in the cryptocurrency’s hold on Congress increased.
Read more: Is Bitcoin Price Volatility an Investment Opportunity? Here’s how to buy bitcoins.
“We think that if it goes above that accumulation and holds around $75,000-$76,000, it will easily go to $80,000,” Gracie Chen, CEO of Universal Exchange BitGate, told Yahoo Finance.
She added, if Bitcoin breaks out of this range and falls below $60,000, it is likely to go to $55,000.
The token has been called the crypto since selling off an all-time high north of $126,000 in October. Still, given the overall adoption of crypto, the decline is not as severe as in other periods.
“The fundamentals of the market, including regulation, custody, and ETF rails, are much stronger than in previous periods, which makes the current downturn more manageable than previous winters,” said Kalidora Kiernan Lane, CEO of trading platform Ostem.
