Optimism over developments in the Middle East sparked a sharp decline in oil prices and rallies across risk markets.
What to know:
- Bitcoin (BTC) rose to just shy of $76,000 in morning U.S. trade on Tuesday, its highest level since the Feb. 5 crash that sent prices plunging to $60,000.
- Optimism over developments in the Middle East sparked a sharp decline in oil prices and rallies across risk markets.
- The next test for the crypto rally comes at current levels, said one analyst.
Bitcoin touched $75,900 in mid-morning U.S. trading hours on Tuesday, marking its highest level since before February 5, when the price crashed down to $60,000.
Optimism about developments in the Iran war is sparking solid gains across risk assets and continued declines in oil prices. The Nasdaq was ahead 1.2% and WTI crude was lower by 6% to $93 per barrel.
Crypto-related stocks were higher across the board as well. Strategy (MSTR) was up 7.6, Coinbase (COIN) 6.2%, Circle (CRCL) 11% and Galaxy Digital (GLXY) 8.3%.
Bitcoin miners — most of which have altered their business plans to focus on AI-related data center buildouts — were also making large upside moves, led by the former Bitfarms, now Keel Infrastructure (KEEL), which was up 20.5%. MARA Holdings (MARA) was ahead 5.8% and Hut 8 (HUT) 4.8%.
The broader macro backdrop has also turned more supportive. With the Nasdaq reaching its highest level since early February, ether (ETH) also outperformed bitcoin, underscoring the risk-on tone across markets, said Joel Kruger, market strategist at LMAX Group.
«Overall, the past 24 hours reflect a market that is beginning to show signs of re-engagement,» Kruger said, pointing to improving technicals and broader participation.
The next test for the crypto rally comes at current levels. Kruger said the $76,000 level for bitcoin, where the mid-March rebound rolled over, is a key resistance.
A decisive move above — alongside sustained strength in ether (ETH), the second-largest cryptocurrency — would be key in determining whether the rebound can evolve into a more durable bullish trend, he said.