Bitcoin rises as risk appetite returns

The world’s largest Crypto currency was last up 2.1 per cent at $69,869.0

Bitcoin was higher on Tuesday, as risk appetite returned after U.S. president said he expected the ongoing war in the Middle East to be over soon.

The world’s largest Crypto currency was last up 2.1 per cent at $69,869.0 by 23:32 GMT.

Bitcoin had briefly dropped to nearly $65,000 over the previous 24 hours as investors fled riskier assets amid surging oil prices, which stoked global inflation fears.

Sentiment improved after U.S. president said the war involving Iran could end soon, helping calm financial markets that had been rattled by the prospect of a prolonged conflict.

The president said the situation could be resolved, though he cautioned that it was unlikely to end this week. He also said that the U.S. would respond stronger if Iran attempted to shut the strategically vital Strait of Hormuz, a key route for global oil shipments.

Oil prices pulled back near $90 per barrel on Tuesday after surging close to $120 a barrel on Monday, easing concerns about a spike in global inflation that had weighed on financial markets earlier in the week. Meanwhile, U.S. stock market closed a bit lower on Tuesday.

Crypto currency markets tracked the improvement in broader risk sentiment. However, traders remain cautious as developments in the Middle East continue to influence commodity prices and global market sentiment.

U.S. investors now await the country’s consumer price index (CPI) report on Wednesday, while the February personal consumption expenditures (PCE) price index – the U.S. central bank’s preferred inflation gauge – is due on Thursday.