Hassan Maishera
TL;DR
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BTC is up by nearly 5% in the last 24 hours and is now trading above $74,000.
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The rally comes despite the persisting tensions in the Middle East between the United States and Iran.
Cryptos Surge Amid U.S.-Iran Tensions
Bitcoin, Ethereum, and other major cryptocurrencies rebounded late Monday, experiencing a "classic risk-on snapback," as traders continued to process the ongoing U.S.-Iran conflict, analysts said.
Bitcoin rose 4.9% over the last 24 hours to $74,414 as of 12:55 a.m. ET on Tuesday, recovering from a low of $70,600 recorded on Monday. Ether surged 7.9% to $2,365, while XRP gained 3.2% to $1.37, and Solana climbed 4.9% to $85.97.
This crypto market recovery coincided with a broader rally in U.S. stocks, with crypto-related equities closing higher. Circle soared 12%, Bullish advanced 7.5%, and Coinbase rose 3.9%.
The rally comes after U.S. Vice President JD Vance stated that Washington has made substantial progress in talks with Iran and expects Tehran to take further steps toward reopening the Strait of Hormuz.
While commenting on this latest development, Rick Maeda, research associate at Presto Research, stated that,
"The market had priced in a meaningful geopolitical premium around Iran and Hormuz, and the latest Vance comments on substantial headway and a path toward reopening the strait gave investors room to take some of that premium back out."
However, analysts cautioned that the rally remains fragile. Maeda warned that the crypto movement is still highly sensitive to headlines, leaving it vulnerable to shifts in the geopolitical narrative, especially regarding the potential de-escalation, ceasefire stability, and progress in reopening Hormuz.
Institutions Continue to Accumulate
The market rally also comes as financial institutions continue to accumulate. Strategy announced on Monday that it has acquired an additional 13,927 BTC for approximately $1 billion, further expanding its position as the largest corporate holder of Bitcoin (BTC). The latest purchase brings the company's total holdings to 780,897 BTC, worth around $59 billion.
The Michael Saylor-led company made the acquisition at an average price of $71,902 per BTC, funded via the sale of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).
CoinShares’s weekly report revealed that crypto investment products recorded $1.1 billion in inflows for the week ending April 13, marking the largest weekly total since early January.
Bitcoin accounted for the majority of those inflows, attracting $871 million. Year-to-date inflows into Bitcoin products are now approaching $2 billion, reinforcing its dominance among institutional investors.
Traders are also closely monitoring Bitcoin dominance, macroeconomic data releases, developments in the energy market, and Federal Reserve signals to determine whether the rally is sustainable or set for reversal.
