Bitcoin Price Rises Above $71,000 as Iran Conflict Concerns Ease

Market Update

The price of Bitcoin surged above $71,000 on Tuesday, driven by easing concerns about the war in Iran. The cryptocurrency rose over 3% to $71,785 before paring some of its gains. The rebound began on Monday after President Donald Trump suggested that he is looking to bring the conflict to an end.

Global Market Impact

Read also: Bitcoin Price Sinks 6% Below $66,500 Amid ETF Outflows and Institutional Selling

The easing of tensions lifted risk assets and sent oil prices lower. Oil extended its decline on Tuesday as lawmakers looked to assure investors that policy interventions could cushion the war's impact on energy prices. The token gained support from global stock markets, where traders hurried to buy the dip on Trump's comments about the imminent end of the Iranian conflict.

Investor Sentiment

Investors are piling back into US-listed spot Bitcoin exchange-traded funds after the products saw outflows late last week. The funds attracted $170 million in net inflows on Monday. According to a report from Glassnode, conditions are stabilizing, with momentum, ETF demand, and profitability metrics improving modestly. However, capital flows remain soft, speculative participation is limited, and broader conviction has yet to fully return.

Comparison to Gold

Read also: Bitcoin's Inflation-Hedging Potential Erodes as Price Falls Below $70,000

So far this month, Bitcoin has outperformed gold, a traditional inflation hedge, after lagging it in recent months. While Bitcoin initially fell when the bombing began, it has risen roughly 7% this month even as gold has fallen about 2%.

Technical Analysis

The $68,000 region has been a strong support for Bitcoin since the war started. To the upside, traders are eyeing a strong push above $73,000 to take Bitcoin to $87,000 as the next major resistance. However, Bitcoin's volatility has been on the rise, with its 30-day implied volatility index reaching a two-week high.

Options Market

Traders continued to seek downside protection in options markets, with Bitcoin puts traded on Deribit concentrated at the $60,000 level.