Bitcoin rose along with Treasuries and stock futures after US President Donald Trump said he’d postpone strikes on Iranian energy power plants and energy infrastructure for five days.
The biggest cryptocurrency advanced as much as 4.8% and traded at around $70,700 on Monday morning in New York. Smaller tokens including Ether and Solana also rose.
Bitcoin had earlier been fluctuating around a two-week low, sliding as far as $67,371 — its lowest level since March 9 — in Asia trading. The token has been volatile since the conflict in Iran began in late February, at one point jumping to a high of nearly $76,000 before tumbling once more as tensions in the region escalated.
Stocks and bonds rebounded following Trump’s comments that the US and Iran had “very good” conversations about an end to the war. While Trump’s announcement initially caused stocks to spike, the gains were quickly trimmed after Iran’s media denied any contact. S&P 500 futures were up 1.6%. Brent fell about 8% toward $103 a barrel.
Flows that have been supporting Bitcoin’s price over the last fortnight had weakened going into Monday, with inflows into US exchange-traded funds tied to the cryptocurrency turning negative.
“A potential catalyst to stabilize the markets for now would be some sort of de?escalation in the Middle East, or at minimum a resumption of normal traffic through the Strait of Hormuz,” analysts on Laser Digital’s derivatives trading desk wrote in a note on Monday.
“This could set off a chain of oil price stabilization, followed by rates consolidation and improved risk sentiment,” they added. “Minus this, crypto markets are likely to stay heavy.”
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