Bitcoin surged nearly 5% on Tuesday, breaking above the $71,000 mark as geopolitical tensions in the Middle East showed signs of easing, prompting a rebound in risk assets.
The rally coincided with a significant drop in crude oil prices. West Texas Intermediate (WTI) crude fell over 11% to approximately $83 per barrel, a sharp reversal from Monday's surge to near $120, which was driven by supply concerns linked to the Iran conflict.
This market shift followed reports of an emergency meeting by the International Energy Agency (IEA) to consider a coordinated release of strategic oil reserves aimed at stabilizing global markets.
As energy prices retreated, investors shifted back into riskier assets. The cryptocurrency market saw broad gains, with Bitcoin trading near $71,500. Ethereum rose to about $2,080, Solana climbed to roughly $88, and XRP outperformed with a 5% increase to approximately $1.43.
Major stock indices also advanced, with the S&P 500 gaining about 0.4% and the Nasdaq Composite rising by roughly 0.5%.
Companies associated with the crypto sector experienced a notable uplift. Circle saw gains of about 7%, Figure surged around 15%, Japan-based Bitcoin treasury firm Metaplanet rose approximately 8%, and crypto mining firm Bitfarms increased by about 7%.