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(Bloomberg) -- Bitcoin pared losses as investors grew hopeful for a diplomatic resolution to the Middle East conflict, even as President Donald Trump’s key ceasefire deadline approaches.
The largest cryptocurrency fell as much as 2.5% before paring most of the loss in New York trading. The token surged the previous day, briefly topping $70,000 for the first time since March. It was little changed at about $69,400.
Markets got a degree of relief on Tuesday after Pakistan urged the US for a two-week extension of the deadline, driving US stocks up from session lows. Bitcoin had initially retreated alongside equities after Trump threatened to bomb civilian infrastructure in Iran unless the Strait of Hormuz was opened.
“Bitcoin remains a risky asset when markets are truly fearful, meaning its price falls amid extreme market volatility, preventing it from reaching new psychologically significant levels,” said Alex Kuptsikevich, chief market analyst at FxPro.
Escalation risks in the war with Iran have largely kept investors on the sidelines after it was reported that Iran had rejected a ceasefire proposal. Trump said that opening the strait, a critical trade waterway, would be part of any deal to end the war.
Since the war started, oil prices have surged. Brent crude has made gains of roughly 50% from the start of the conflict at the end of February, while gold is down more than 10%.
Bitcoin has been comparatively resilient, with signs that institutional selling pressure is easing. US-listed spot Bitcoin exchange-traded drew $471.3 million in net inflows Monday, building on $22.3 million last week – a sharp reversal from nearly $300 million in outflows the week prior. March recorded about $1.3 billion in net inflows into the ETFs – a stabilization after the four straight months of net outflows that began in November 2025.
“If we take a step back to see the bigger picture, it is easy to see that Bitcoin is doing relatively well,” Kuptsikevich said. “It is trading within a fairly narrow range and above the levels seen in early March, unlike stock indices and gold.”
Bitcoin sentiment “remains bearish on the short-to-medium time frame,” said Rachael Lucas, an analyst at BTC Markets. The market is in wait-and-see mode, she added, with “bulls lacking sufficient conviction to sustain breakouts and bears unable to force a decisive breakdown.”
Bitcoin has been stuck in a range between roughly $60,000 and $75,000 since the conflict in Iran began in late February, at one point jumping to a high of nearly $76,000 before tumbling. For much of the past two weeks, the token traded below $70,000. Now traders have eyes on an end to the war and new crypto legislation in the US as potentially pushing digital assets higher.
“The bull scenario hinges on two catalysts: A confirmed and sustained US-Iran ceasefire that brings oil below $100, and passage of the US Clarity Act, expected in late April, which institutional market participants are closely watching as a regulatory unlock,” Lucas said.
