Bitcoin rose on Wednesday, holding above $71,000 as investors weighed ongoing tensions in the Middle East against early signs of diplomatic engagement between Washington and Tehran.
The world's largest cryptocurrency was trading up 1% at $71,197.8 by 10:27 Saudi time.
Bitcoin fell below $70,000 earlier in the week, as escalating conflict triggered a general move away from risk and negatively impacted digital assets.
Israel attacks Tehran even as Trump says he is negotiating with Tehran
US President Donald Trump said on Tuesday that Washington is now in negotiations with Iran, adding that Tehran was speaking logically and seemed open to a peace agreement.
Reports that Washington had presented Iran with a 15-point proposal to end the conflict have bolstered hopes for de-escalation.
Meanwhile, conflicting developments kept investors on edge. Media reports indicated that Israel carried out strikes in the Iranian capital, Tehran, on Wednesday, highlighting the fragility of any diplomatic progress.
Oil prices fell on Wednesday, reversing some of their recent gains as traders assessed the likelihood of easing supply risks in the region. Lower crude prices helped support a broader appetite for risk.
Cryptocurrencies have increasingly moved in tandem with global risk sentiment, reacting to shifts in geopolitical tensions and energy markets. Previous losses coincided with a rise in oil prices.
US stock index futures rose in Asian trading on Wednesday, while Asian stocks also advanced.
Despite the volatile backdrop, Bitcoin has shown resilience around the $70,000 mark. Analysts have cited continued institutional interest and improved liquidity conditions as supporting factors for the price.
Cryptocurrency prices today: Altcoins rise amid widespread buying
Most alternative currencies fell on Thursday, continuing losses amid a cautious mood.
Ethereum, the world's second-largest cryptocurrency, rose 1.2% to $2,172.0.
XRP, the world's third-largest cryptocurrency, rose 0.4% to $1.42.
Solana rose 2.6%, while Cardano and Polygon each climbed 3%.
Among the meme currencies, Dogecoin jumped by 4.1%.
