Crypto markets are betting that the U.S. and Iran war may be progressing toward peace. Bitcoin rose 5% over the past 24 hours to around $75,000 early Tuesday afternoon, nearing its highest mark since early February, according to data from Binance. The world’s second largest cryptocurrency, Ethereum, notched an even bigger day-over-day jump, rising 7% to almost $2,400 to record a two-month high.
The total market capitalization of all cryptocurrencies rose 4% to $2.6 trillion, mirroring gains in the stock market. On Tuesday morning, the S&P 500 increased 1%, and the Nasdaq jumped nearly 2%. “The rise in cryptocurrencies was driven by an impressive recovery in risk appetite in traditional financial markets,” said Alex Kuptsikevich, chief market analyst at online brokerage FxPro, in a note.
Bitcoin’s rise above $75,000 is a dose of optimism for traders who have watched the world’s largest cryptocurrency struggle to record a sustained rally amid a volatile six months.
In October, Bitcoin recorded an all-time high of around $126,000 but then plummeted after Trump issued a new set of tariff threats against China. The broader digital assets market failed to recover, and prices continued to drop through the end of January until Bitcoin began to hover between $60,000 and $75,000 throughout February and March.
The cryptocurrency’s price fluctuations have since largely tracked the broader ups and downs of the financial markets, which have been whipsawed by conflict in the Middle East and worries over rising oil prices.
The recent optimism in traditional financial markets comes after weekend peace negotiations between the U.S. and Iran. Vice President JD Vance flew to Pakistan on Saturday to participate in marathon talks with Iranian officials over the prospect of ending the monthlong conflict and opening up the Strait of Hormuz, a key choke point for the world’s oil trade.
While the talks were unsuccessful, President Donald Trump claimed on Monday that Iran still wants to negotiate an end to the conflict. “We’ve been called by the other side, and they would like to make a deal very badly,” he said.
And analysts believe that, as stock markets surge amid peace negotiations, the crypto market has a large runway to rebound.
“While the S&P 500 is approaching record highs,” said Ish Asad, a research analyst at Bitwise, “Bitcoin remains down nearly 50% from its height and appears to have far more upside ahead.”