(Bloomberg) — Bitcoin rose above $71,000 for the first time in four days as concerns over the war with Iran eased following comments from US President Donald Trump.
The original cryptocurrency rose as much as 3.1% to $71,088 on Tuesday, rallying alongside equities as oil prices slumped. Bitcoin later pared some of its gains and was trading around $70,878 in early morning in New York. The market reversal from Monday came after Trump said the conflict would resolve “very soon.”
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Other cryptocurrencies also rose. Ether, the second-largest digital asset, was up as much as 2.2%, while XRP and Solana gained as much as 2.8% and 1.9%, respectively. The tokens pared gains along with Bitcoin later in the day.
“Trump’s latest posts are being seen as potentially flagging an end to the Iranian conflict faster than the market was anticipating,” said Richard Galvin, co-founder of hedge fund DACM. “Risks are that the market is misreading Trump’s statements, or that either Israel, the USA or Iran takes action to further escalate hostilities and takes the option of de-escalation off the table.”
Trump sought to ease market jitters about energy prices during a Monday news conference at his resort in Doral, Florida. The president said his administration was “looking to keep the oil prices down.” He also raised the possibility of waiving some oil-related sanctions and US Navy escorts of tankers through the Strait of Hormuz.
Equities jumped, with Europe’s Stoxx 600 set for its biggest daily jump since April and US stock futures advancing.
Meanwhile, Brent crude fell more than 7% toward $91 a barrel, well off its $119.50 peak on Monday.
Since the US and Israel initiated a bombing campaign on Iran on Feb. 28, Bitcoin has stood out as a relatively stable asset.
“The tape has been very strong for Bitcoin since the war started, with the $68,000 region being a very strong support,” said Pratik Kala, head of research at Apollo Crypto. “To the upside we are eyeing a strong push above $73,000 to take us to $87,000 as the next major resistance.”
So far this month, Bitcoin has even outperformed gold, a traditional inflation hedge. While Bitcoin initially fell when the bombing began — which happened while markets were closed — it has risen roughly 7% this month, while bullion has fallen about 2%.