(SeaPRwire) – Bitcoin gained value along with stocks, while oil prices dropped, after U.S. President Donald Trump stated that the U.S. had started discussions with Iran—fueling optimism for an agreement to reduce tensions.
The first cryptocurrency climbed over 5% to hit a high of $71,794 in New York trading before giving back part of that increase. Other smaller digital assets like Ether and Solana also moved higher.
Earlier on Monday, Bitcoin had been oscillating near a two-week low, dipping as low as $67,371—its weakest point since March 9. The digital asset has been unstable since the Iran conflict started in late February, at one point surging to almost $76,000 before plummeting again as regional tensions worsened.
“Right now, the crypto market situation doesn’t seem as bad as it was at the end of February, when investor sentiment was similar,” noted Alex Kuptsikevich, chief market analyst at FxPro.
Bitcoin first rose after the U.S. president announced he would postpone strikes on Iranian energy plants and infrastructure for five days. Riskier assets generally rallied, with the S&P 500 up 1.5%, while Treasury yields and the U.S. dollar fell as traders scaled back some of their more aggressive expectations for Federal Reserve policy.
The capital flows that had been boosting Bitcoin’s price over the past two weeks had softened heading into Monday, with investments in U.S. cryptocurrency-linked exchange-traded funds turning negative.
“A possible trigger to steady markets for the time being would be some form of de-escalation in the Middle East, or at least a return to normal shipping through the Strait of Hormuz,” analysts from Laser Digital’s derivatives trading team wrote in a Monday note.
“This could start a sequence where oil prices stabilize, followed by interest rate consolidation and better risk appetite,” they added. “Without this, crypto markets will probably remain under pressure.”
On Monday, Trump said Iranian representatives had contacted the U.S. to begin talks because they wanted to make a deal following his threat to attack energy facilities. However, Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, stated in a Monday social media post that the U.S. president’s claims were fake news “used to manipulate financial and oil markets.”
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