Bitcoin demonstrated significant growth, surging close to 5% on Tuesday and reaching over $71,000. This increase aligns with a recovery in risk assets occurring amid potential reductions in geopolitical tensions in the Middle East.
This upward trend in Bitcoin's value followed a notable drop in oil prices, which declined over 11% to approximately $83 after spiking to nearly $120 a barrel due to supply issues related to the Iran conflict. Reports from the International Energy Agency suggested an emergency meeting to discuss coordinated actions that could include the release of strategic oil reserves to help stabilize the market.
As energy prices fell, investors shifted their focus back to riskier assets. Bitcoin traded at around $71,500, while Ethereum climbed to about $2,080, both marking a gain of approximately 4%. Solana saw an uptick to roughly $88, and XRP rose about 5% to reach around $1.43.
Equity markets exhibited positive momentum as well. The S&P 500 index advanced by about 0.4%, while the Nasdaq Composite gained roughly 0.5%. Notably, stocks linked to cryptocurrency also surged, with Circle increasing by around 7% and Figure climbing about 15%. Other significant gains were noted in the Japan-based Bitcoin treasury firm Metaplanet, which rose approximately 8%, and crypto mining firm Bitfarms, which increased by about 7%.