Bitcoin rose above $76,000 in Asian trading on Tuesday, extending its recent gains as improved risk sentiment and hopes for progress in US-Iranian talks boosted appetite for speculative assets.
The world's largest cryptocurrency was trading 1.6% higher at $76,045.60 by 11:10 Saudi time.
Traders are awaiting the outcome of US-Iranian talks before the ceasefire expires.
Market sentiment was supported by expectations of diplomatic engagement between Washington and Tehran in Islamabad, ahead of Wednesday's looming ceasefire deadline.
The gains come on the back of momentum from last week's highs on Wall Street, where major stock indexes advanced on the back of easing geopolitical concerns and gains in technology stocks.
This pattern of highs followed by rapid declines has become a hallmark of recent trading, highlighting a market capable of upward momentum but struggling to maintain it once key resistance levels come into play, IG analysts said in a note.
Bitcoin also drew support from continued institutional interest and steady flows into digital asset investment products.
Whale activity also contributed to the market's volatile behavior. Large holders were seen accumulating during dips, helping to stabilize downward movements, IG analysts added.
Kevin Warsh's hearing and the Fed's outlook are in focus.
Traders also focused on the confirmation hearing for Kevin Warsh, President Donald Trump's nominee to head the Federal Reserve. Tuesday's Senate hearing is being closely watched for clues about future interest rate policy.
In his speech on Monday, Warsh stressed the importance of central bank independence but warned that the Fed must stay the course, arguing that it should focus narrowly on monetary policy rather than broader economic or political goals.
Aside from interest rates, traders are also watching Warsh’s stance on financial regulation, as his views on regulation and market structure could shape the long-term trajectory of digital assets in the United States.
Cryptocurrency prices today: Altcoins rise in limited trading range
Most alternative currencies rose on Tuesday.
Ethereum, the world's second-largest cryptocurrency, rose 0.7% to $2,313.92.
XRP, the world's third-largest cryptocurrency, rose 1.5% to $1.44.
Solana rose by 1%, while Cardano and Polygon each rose by 0.5%.
Among the meme currencies, Dogecoin rose by 0.8%.
