Bitcoin rose above $75,000 on Thursday, extending its sharp gains from earlier this week as improved global risk sentiment and hopes for renewed diplomacy between the United States and Iran boosted demand for the cryptocurrency.
The world's largest cryptocurrency was trading 1.4% higher at $75,069.7 by 09:42 Saudi time.
Bitcoin jumped to a four-week high near $76,000 earlier this week, before some of those gains were pared back amid profit-taking.
This pattern – highs followed by rapid declines – has defined recent trading, highlighting a market capable of upward momentum but still struggling to maintain it, IG analysts said in a recent note.
Bitcoin jumps in line with broader risk aversion
The recent surge in Bitcoin mirrored a broader rally in global risk assets. Wall Street closed at record highs on Wednesday, buoyed by strong corporate earnings and gains led by the technology sector, while Asian stocks continued their upward trend on Thursday.
Investor appetite was supported by growing optimism that the United States and Iran could resume negotiations to extend the fragile ceasefire, easing concerns about a protracted conflict.
Reports indicate ongoing diplomatic efforts, even as Washington maintains a naval blockade on Iranian ports and tensions persist around the Strait of Hormuz.
Part of the recent strength was linked to improved macroeconomic sentiment and a renewed appetite for risk. Softer economic data and more stable volatility conditions amid hopes for a lasting ceasefire agreement between the US and Iran supported demand for risk assets, including cryptocurrencies, IG analysts wrote.
A technical breakout above around $76,100 would signal continued upward movement, but failure would keep trading within a defined range, they added.
Media reports also indicated continued institutional accumulation and strong inflows into cryptocurrency markets, although gains were limited by intermittent profit-taking near recent highs.
Cryptocurrency prices today: Altcoins make modest gains
Most alternative currencies also rose modestly on Thursday amid a positive risk appetite.
Ethereum, the world's second-largest cryptocurrency, rose 1.6% to $2,357.92.
XRP, the world's third-largest cryptocurrency, rose 3.5% to $1.40.
Solana rose by 3%, while Cardano and Polygon each jumped by 4%.
Among the meme symbols, Dogecoin advanced by 3.2%.
