Bitcoin hovers just under $70k as risk appetite gets a bid on Iran war end hopes

Bitcoin was higher on Tuesday, as risk appetite returned after President Donald Trump said the ongoing U.S.-Israeli war with Iran could be over soon.

The world’s largest cryptocurrency was last up 2.1% at $69,869.0 by 19:32 ET (23:32 GMT).

Bitcoin had briefly tumbled to around $65,000 over the previous 24 hours as investors fled riskier assets amid surging oil prices, which stoked global inflation fears.

Trump talks end to Iran war, risk appetite improves

Sentiment improved after U.S. President Donald Trump said the war involving Iran could end soon, helping calm financial markets that had been rattled by the prospect of a prolonged regional conflict.

Trump said the situation could be resolved, though he cautioned that it was unlikely to end this week. He also warned that the U.S. would respond “20 times harder” if Iran attempted to shut the strategically vital Strait of Hormuz, a key route for global oil shipments.

Oil prices retreated near $90 per barrel on Tuesday after surging close to $120 a barrel on Monday, easing concerns about a spike in global inflation that had weighed on financial markets earlier in the week. Meanwhile, Wall Street ended a smidge lower on Tuesday.

Cryptocurrency markets tracked the improvement in broader risk sentiment. However, traders remain cautious as developments in the Middle East continue to influence commodity prices and global market sentiment.