Bitcoin stabilized below $77,000 on Tuesday, after four consecutive sessions of decline, as investors continued to monitor the fallout from the conflict with Iran, the impact of rising oil prices on global inflation, and the trajectory of US interest rates.
The world's largest cryptocurrency recorded a slight decline of 0.1% to trade at $76,818.90, after losing some of the strong gains that pushed it past the $82,000 level last week, supported by strong inflows into Bitcoin-linked exchange-traded funds.
Market movements came amid caution, despite US President Donald Trump announcing a postponement of planned attacks on Iran while diplomatic efforts continue. However, concerns related to global oil supplies and the potential disruption of shipping through the Strait of Hormuz kept investors on the defensive.
Analysts noted that Bitcoin continues to move in tandem with global risk sentiment, as geopolitical tensions and inflation fears outweigh optimism related to institutional flows and spot ETFs.
In a recent note, IG analysts explained that the cryptocurrency market is currently operating in a complex economic environment, supported by investment flows and regulatory developments, while geopolitical risks and waves of risk aversion continue to impose sharp price volatility.
As for the prices of other cryptocurrencies, they moved within a limited range amid continued market anticipation, with Ethereum rising 0.4% to $2,125.60, while Ripple fell 0.7% to $1.38.
Solana also fell by 0.4%, Polygon declined by 1%, while Cardano recorded a slight increase of 0.3%.
In the cryptocurrency sector, Dogecoin fell by 1.6%, as investor appetite for highly volatile assets remained weak.
