Bitcoin Jumps on Diplomatic Hopes Amid US-Iran Tensions

Bitcoin's price has risen by 1.3% to $65,440 following a pause in fighting between the US and Iran, according to data from LSEG.

The improvement in risk sentiment is attributed to President Trump delaying major military escalation against Iran to allow for diplomacy, as reported by The Wall Street Journal.

Naeem Aslam, an analyst at Zaye Capital Markets, notes that continued negotiations, lower energy prices, and reduced military escalation have improved liquidity conditions, lowered inflation fears, and supported risk appetite.

However, Aslam also warns that bitcoin remains vulnerable due to recent outflows in spot Bitcoin exchange-traded funds. He predicts that any renewed attacks in the Middle East could send Bitcoin's price as low as $60,000.