Bitcoin Recovers Modestly Amid Ongoing Geopolitical Tensions

Bitcoin's price has made a modest recovery after plummeting to a one-week low on Monday. The decline was partly due to lingering concerns over the Iran war and expectations of further US interest-rate hikes, which weighed on risk sentiment.

Naeem Aslam, an analyst at Zaye Capital Markets, notes that President Trump's rejection of Iran's proposal for a seven-day ceasefire lifted oil prices and strengthened inflation concerns. This made the rate backdrop less supportive for Bitcoin.

Aslam also points out that Trump's later comments on the conflict potentially ending soon left Bitcoin vulnerable to rapid shifts in geopolitical risk. Despite this, the cryptocurrency has managed to rise 0.4% to $83,873 after hitting a low of $82,516 on Monday.