Bitcoin (BTC-USD) rose 1% on Tuesday, extending the previous session’s gains after President Trump hinted that the US-Israel war against Iran could end soon.
The token moved above $71,000 as the stock market rose and oil prices fell after Trump said the conflict with Iran could end “very soon.”
Wall Street has been watching oil prices, which remain about $20 a barrel higher than when the war began, for signs of inflation that could delay Federal Reserve rate cuts.
“Cryptocurrency markets are advancing even as global assets adjust to higher energy prices and changing rate expectations,” wrote Iliya Kalchev, an analyst at cryptocurrency platform Nexo.
Inflows into spot exchange-traded funds have boosted prices, with $568 million in net inflows recorded last week, marking a second consecutive positive week after a period of outflows, according to Bloomberg data.
Read more about bitcoin movements and current market action.
Meanwhile, Strategy (MSTR) rose nearly 2% on Tuesday after B. Riley Securities initiated coverage of the bitcoin treasury giant with a Buy rating. The company acquired another 17,994 bitcoins last week, maintaining its position as the largest public holder of the token.
“Given that issuances are fixed and large holders continue to accumulate during volatility, a sustained decline would likely require a broader deterioration in liquidity conditions,” Kalchev said.
The world’s largest cryptocurrency has shown signs of resilience since the US-Israel war against Iran began on February 28. Although it initially fell to $63,000, bitcoin has recovered, approaching $74,000 mid-last week as enthusiasm grew over crypto legislation pending in Congress.
Read more: Is bitcoin price volatility an investment opportunity? Here’s how to buy bitcoins.
“We believe that if it breaks out of this bullish accumulation and manages to hold between $75,000 and $76,000, it could easily move towards $80,000,” Gracy Chen, CEO of universal exchange Bitget, told Yahoo Finance.
If bitcoin breaks out of this range and falls below $60,000, it could likely advance towards $55,000, he added.
The token has been in the so-called crypto winter since selling off all-time highs above $126,000 in October. Even so, the decline has not been as severe as in other periods, given the widespread adoption of cryptocurrencies.
“The underlying structure of the market, including regulation, custody and ETF rails, is much stronger than in previous cycles, making the current decline more manageable than in previous winters,” said Kaledora Kiernan-Linn, CEO of trading platform Ostium.