Bitcoin edged higher on Wednesday, holding above the $71,000 level as investors balanced ongoing Middle East tensions with tentative signs of diplomatic engagement between Washington and Tehran.
The world’s largest cryptocurrency last traded 1% higher at $71,197.8 by 02:27 ET (06:27 GMT).
Bitcoin fell below $70,000 earlier in the week, when escalating conflict triggered a broad risk-off move and weighed on digital assets.
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Israel attacks Tehran even as Trump says negotiating with Tehran U.S. President Donald Trump said on Tuesday that Washington is “in negotiations right now” with Iran, adding that Tehran was “talking sense” and appeared open to a peace deal.
Reports that Washington had presented Iran with a 15-point proposal to end the conflict further supported hopes of de-escalation.
At the same time, conflicting developments kept investors cautious. Media reports indicated that Israel carried out strikes in the Iranian capital Tehran on Wednesday, highlighting the fragility of any diplomatic progress.
Oil prices slipped on Wednesday, reversing some of their recent surge as traders priced in the possibility of easing supply risks in the region. Lower crude prices helped support broader risk appetite.
The cryptocurrency has increasingly moved in tandem with global risk sentiment, reacting to shifts in geopolitical tensions and energy markets. Earlier losses coincided with a spike in oil prices.
U.S. stock index futures ticked higher in Asian trading on Wednesday, while Asian stocks also advanced.
