Bitcoin (BTC-USD) climbed 1% on Tuesday, extending gains from the prior session after President Trump hinted the US-Israel war against Iran could end soon.
The token moved above $71,000 as the stock market edged higher and oil prices fell after Trump said the conflict with Iran could be over “very soon.”
Wall Street has been watching oil prices, which remain about $20 per barrel higher than when the war began, for signs of inflation that could delay Federal Reserve rate cuts.
“Crypto markets are advancing even as global assets adjust to higher energy prices and shifting rate expectations,” wrote Iliya Kalchev, analyst at crypto platform Nexo.
Inflows into spot exchange-traded funds have buoyed prices, with $568 million in net inflows recorded last week, marking a second consecutive positive week after a period of outflows, according to Bloomberg data.
Read more about bitcoin’s moves and today’s market action.
Meanwhile, Strategy (MSTR) rose nearly 2% Tuesday after B. Riley Securities initiated coverage of the bitcoin treasury giant with a Buy rating. The company scooped up another 17,994 bitcoin last week, maintaining its position as the largest public holder of the token.
“With issuance fixed and large holders continuing to accumulate during volatility, sustained downside would likely require broader deterioration in liquidity conditions,” Kalchev said.
The world’s largest cryptocurrency has shown signs of resilience since the US-Israel war against Iran began on Feb. 28. Though it initially dropped to $63,000, bitcoin has bounced back, nearing $74,000 mid-last week as enthusiasm grew over pending crypto legislation in Congress.
Read more: Is bitcoin’s price volatility an investing opportunity? Here’s how to buy bitcoin.
“We think that if it breaks out of this accumulation to the upside and manages to hold around $75,000-$76,000, it could easily move toward $80,000,” Gracy Chen, CEO at universal exchange Bitget, told Yahoo Finance.
If bitcoin breaks out of this range and falls below $60,000, it could likely move toward $55,000, she added.
The token has been in a so-called crypto winter since selling off from all-time highs north of $126,000 in October. Still, the drawdown has not been as severe as other periods, given crypto’s overall adoption.
“The market’s underlying structure, including regulation, custody, and ETF rails, is far stronger than in past cycles, which is making the current drawdown more manageable than prior winters,” said Kaledora Kiernan-Linn, CEO of trading platform Ostium.
