Bitcoin rose alongside equities while oil prices fell after U.S. President Donald Trump said the U.S. had begun talks with Iran, raising hopes for a deal to ease the conflict.
The original cryptocurrency advanced more than 5% to trade as high as $71,794 in New York before paring some of the gain. Smaller tokens including Ether and Solana also rose.
Bitcoin had earlier on Monday been fluctuating around a two-week low, sliding as far as $67,371 — its lowest level since March 9. 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.
“Currently, the situation in the crypto market does not appear as severe as it did at the end of February, when sentiment was at the same level,” said Alex Kuptsikevich, chief market analyst at FxPro.
Bitcoin initially climbed after the U.S. president said he would delay strikes on Iranian energy facilities and infrastructure for five days. Risk assets rallied more broadly, with the S&P 500 gaining 1.5%, while Treasury yields and the dollar declined as traders pared back some of their more hawkish Federal Reserve bets.
Flows that have been supporting Bitcoin’s price over the last fortnight had weakened going into Monday, with inflows into U.S. 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.”
Trump on Monday said representatives from Iran reached out to start talks with the U.S. because they were eager to make a deal after his threat to strike energy facilities. But Iran’s parliament speaker, Mohammad Bagher Ghalibaf, on Monday said in a social media post that the US president’s claims were fake news “used to manipulate the financial and oil markets.”
