Bitcoin has rebounded, crossing the $71,000 mark, as anxieties surrounding the conflict between Iran and the U. S. appear to be diminishing. The cryptocurrency market experienced a boost following comments from President Donald Trump, who suggested that the conflict could be resolved "very soon". This sentiment shift has spurred a return of risk appetite across global markets.
Bitcoin's price increased as much as 3.1% to $71,088 on Tuesday, before settling near $70,878 in early New York trading. Other cryptocurrencies, including Ether, XRP, and Solana, also saw gains, though they moderated later in the day. This positive movement follows a period of relative stability for Bitcoin since the beginning of the US and Israeli bombing campaign on Iran on February 28th, with some analysts identifying the $68,000 level as a key support zone.
The correlation between oil prices and the crypto market has been evident during this period. Trump's administration is reportedly working to keep oil prices down, even considering waiving some oil-related sanctions and deploying US Navy escorts for tankers in the Strait of Hormuz. This news led to a drop in Brent crude prices, further easing market jitters. Bitcoin has outperformed gold this month, gaining approximately 7% compared to gold's 2% decline.
Analysts are also considering structural factors, such as the growth of US federal debt, which has grown at an annualized rate of roughly 14% since mid-2025. Historical data indicates that government spending during military conflicts can lead to money supply growth, supporting risk assets over the long term. Bitcoin remains a subject of keen interest, with market participants closely monitoring its correlation with global liquidity and overall risk sentiment.
