Optimism Regarding Iran War Talks Pushes Bitcoin to Highest Level in 4 Weeks

SadaNews - Bitcoin has risen to its highest level in four weeks, with high-risk assets gaining on the hopes that the United States may reach an agreement with Iran to end the conflict between them.

The largest cryptocurrency surged to $74,901, the highest level since March 17, before trimming its gains to trade around $74,400 at 8:30 AM Singapore time on Tuesday. Smaller cryptocurrencies also rose, as Ethereum increased by 5% to $2,370.

Political Optimism Supports High-Risk Assets

These movements followed U.S. President Donald Trump's statement that Iran had reached out to his administration regarding potential peace talks, despite the United States beginning a maritime blockade in the Strait of Hormuz. Asian stocks also rose with optimism that the agreement would help calm oil prices and support economic growth.

Damien Lu, Chief Investment Officer at Eriksen's Capital, stated, "Bitcoin is following the upward wave in high-risk assets." He added, "Although the blockade has begun, the market viewed this positively, as Trump effectively extended the timeline for reaching an agreement, and he is reportedly seeking another round of talks."

He added, "Bitcoin continues to trade better than high-risk assets in general," but it may not see significant increases until the United States adopts the "Clarity Act," a regulatory framework for digital assets.

Better Performance than Traditional Assets Since War Outbreak

Since its decline from a record high of $126,000 in October, Bitcoin has moved within a narrow range over the past two months.

However, it has outperformed many traditional assets since the outbreak of the war between the United States and Iran at the end of February, rising by more than 10% since February 27, while gold has declined by about 10%. The S&P 500 index has remained almost stable during the same period.

Traditionally, Bitcoin has moved in parallel with high-risk assets, a pattern it seems to be following again.

Tony Sycamore, an analyst at IG Markets, wrote in a note that "Bitcoin behaves more like a traditional high-risk asset, not as a safe haven, and the improved risk appetite this month has supported its recent gains."

He added, "For a more robust bullish trend to form in the medium term, Bitcoin needs to achieve a sustainable breakout and close above the trend channel resistance level at $79,000."