Bitcoin climbed to a two-week high near $70,000 on Monday as risk assets rebounded despite President Donald Trump confirming that US military operations in Iran remain ongoing.
The leading cryptocurrency traded around $68,938, up 4.4% over 24 hours, after briefly topping $70,000 on some platforms, recovering from a weekend low near $63,100 following initial reports of bombings in Iran.
“The United States military continues to carry out large-scale combat operations in Iran,”
Said President Donald Trump, adding:
“We are destroying Iran’s missile capabilities, and you see that on an hourly basis.”
Ethereum rose 3.2% to $2,032, while Solana gained 3.5% to $87 and XRP added 1.3% to $1.39, as the Nasdaq Composite reversed early losses to climb 0.39% by midday with the S&P 500 little changed.
Stephen Coltman, head of macro at 21Shares, said rising inflation expectations linked to higher commodity prices and war-related spending could enhance Bitcoin’s appeal relative to cash if deposit rates lag price pressures.
“With the conflict boosting commodity prices and boosting government spending to finance the war, expected inflation has gone up but deposit interest rates have not changed,”
Said Coltman, adding:
“If rates are 3% but expected inflation is 5%, then you will look for alternatives to cash because otherwise your money will be losing value over time in real purchasing power terms.”
IG analysts Chris Beauchamp and Axel Rudolph noted that silver’s 7% slide and gold’s struggle after early gains may further support Bitcoin on a relative basis, adding that equities appear able to withstand Middle East tensions provided the conflict does not escalate further.
At the time of reporting, Bitcoin price was $69,340.60.