Bitcoin jumped to a one-month high above $74,000 on Tuesday, erasing losses from the weekend as improved risk appetite and lower oil prices supported broader financial markets.
The world's largest cryptocurrency was trading up 4.7% at $74,193.70 by 09:58 Saudi time.
This move pushed Bitcoin back towards levels seen in mid-March - the period preceding the escalation of the Iranian conflict.
Bitcoin rises amid broader risk appetite
The rally followed a broader recovery in riskier global assets, with Wall Street posting strong gains on Monday. The S&P 500 rose more than 1%, while the Nasdaq Composite advanced as investors flocked to technology stocks on continued optimism about demand for artificial intelligence.
Asian stock markets also rose in early trading on Tuesday.
Sentiment in cryptocurrency markets was supported by a decline in oil prices, which fell below $100 a barrel after recent highs, boosting appetite for riskier assets.
Markets also drew some comfort from signs that diplomatic channels between the United States and Iran remained open, even after weekend talks failed to achieve a breakthrough.
Reports indicate that Washington and Tehran are considering a second round of face-to-face talks in the coming days, aimed at extending the fragile ceasefire before it expires.
The reported diplomatic push comes even as tensions escalate, with the United States imposing a naval blockade on Iranian ports and warning Tehran of retaliation.
Short covering also contributed to this move, as traders canceled bearish positions as prices rose, boosting the upward momentum.
Strategy acquires 13,927 Bitcoin using preferred stock proceeds
Strategy Inc (NASDAQ:MSTR) said on Monday that it purchased 13,927 bitcoins worth about $1.0 billion last week, funded in part through sales of its preferred stock, according to a filing with the U.S. Securities and Exchange Commission.
The company said it sold approximately 10.03 million shares of its Class A perpetual variable-priced preferred stock, raising about $1.0 billion in net proceeds. The funds were used to purchase Bitcoin at an average price of approximately $71,902.00 per coin.
Following the acquisition, Strategy's total holdings increased to 780,897 bitcoins, purchased at a total cost of $59.02 billion, according to the filing.
Cryptocurrency prices today: Altcoins surge, Ether rises 8%
Most alternative currencies also rose sharply on Tuesday, with Ethereum, the world's second-largest cryptocurrency, jumping 8% to $2,361.92.
XRP, the world's third-largest cryptocurrency, rose 3.6% to $1.36.
Solana rose, while Cardano and Polygon each increased by 2%.
Among the meme currencies, Dogecoin advanced by 2%.
