The world’s largest cryptocurrency climbed above $71,000 on Tuesday as President Trump suggested the US-Israel war against Iran could end shortly, lifting broader risk assets.
Bitcoin extended gains on Tuesday, rising roughly 1% to trade above $71,000 after President Trump indicated the US-Israel military conflict with Iran could conclude in the near term. The move came as stock markets edged higher and oil prices declined following Trump’s remarks that the war could be over soon.
The price recovery builds on a broader pattern of resilience since the conflict began on Feb. 28, when Bitcoin initially dropped to $63,000 before bouncing back toward $74,000 the following week amid growing optimism around pending cryptocurrency legislation in Congress.
What is driving the latest move
Wall Street has been closely monitoring oil prices, which remain roughly $20 per barrel above where they stood before the war began, as a potential source of inflation that could delay Federal Reserve interest rate decisions. Any signal that the conflict might wind down carries implications for energy markets and, by extension, rate expectations that have weighed on risk assets in recent weeks.
Analysts pointed to the combination of geopolitical optimism and continued institutional interest as the primary forces behind Tuesday’s gains. Inflows into spot Bitcoin exchange-traded funds recorded net inflows of $568 million last week, marking a second consecutive positive week following a period of outflows, according to Bloomberg data.
Strategy, formerly known as MicroStrategy, added to its Bitcoin holdings last week, acquiring 17,994 additional tokens and maintaining its position as the largest publicly traded holder of the cryptocurrency. Shares of Strategy rose nearly 2% on Tuesday after B. Riley Securities initiated coverage of the company with a buy rating.
Where Bitcoin stands in the current cycle
Bitcoin has been in what analysts describe as a crypto winter since selling off from all-time highs above $126,000 in October. The current drawdown, with the token trading around $71,560 as of Tuesday, represents a year-to-date decline of roughly 20% and a three-month drop of approximately 22%.
Despite the severity of that pullback in percentage terms, analysts note the current period has been more manageable than previous crypto winters. They attribute that relative stability to structural improvements in the broader market, including clearer regulatory frameworks, improved custody infrastructure, and the maturation of ETF distribution channels that have made the asset class more accessible to institutional capital.
The three-year return for Bitcoin still stands at roughly 217%, reflecting the long-term value creation that has accompanied the cryptocurrency’s broader adoption even through periods of significant price weakness.
Key levels traders are watching
Technical analysis places Bitcoin’s immediate resistance near $72,000 and more significantly at $75,000 to $76,000. Analysts suggest a sustained hold above that range could open a path toward $80,000. On the downside, a break below $60,000 could accelerate selling toward $55,000, though the current structural setup is considered more stable than in prior cycles.
Trading volume remains below historical averages, a condition that analysts say often precedes larger directional moves as market participants wait for clearer signals. The current price sits roughly midway between the year’s high of $126,296 and its low of $60,001.
Ether also gained on Tuesday, rising 2% to trade above $2,000 per token, with other digital assets following Bitcoin’s lead higher across the session.
Bitcoin‘s market capitalization stands at approximately $1.41 trillion, keeping it firmly in position as the largest cryptocurrency by total valuation.