Bitcoin approaches $75,000 as geopolitical fears recede, risk appetite bounces

Bitcoin rose on Thursday, nearing the $75,000 level, as it extended the strong gains recorded earlier in the week. Improved global risk appetite and growing hopes for a resumption of the diplomatic track between the United States and Iran bolstered demand for the cryptocurrency.

The world’s largest cryptocurrency, Bitcoin, was trading up 1.1% at $74,890 by 09:23 AM ET (13:23 GMT).

Earlier in the week, Bitcoin prices had jumped to a four-week high near $76,000, before trimming some gains due to profit-taking.

Analysts at IG Group noted in a recent memo: "This pattern — rallies followed by quick pullbacks — has become the hallmark of recent trading, reflecting a market capable of generating upward momentum but still struggling to maintain it."

Bitcoin Rises in Tandem with High-Risk Assets

The recent gains in Bitcoin aligned with a broader rally in high-risk assets globally. Wall Street closed at record levels on Wednesday, driven by strong corporate earnings and tech-led gains, while Asian stocks continued their ascent on Thursday.

Investor appetite was fueled by increasing optimism that the United States and Iran might resume negotiations to extend a fragile ceasefire, helping to calm fears of a prolonged conflict.

Reports indicate that diplomatic efforts are ongoing, even as Washington continues its naval blockade of Iranian ports and tensions persist around the Strait of Hormuz.

IG Group analysts added: "Part of the recent strength is linked to improved macroeconomic sentiment and renewed risk appetite. Relatively weaker economic data and stable volatility levels, amid hopes for a lasting ceasefire agreement between the U.S. and Iran, have supported demand for high-risk assets, including cryptocurrencies."

They continued: "A technical breakout above approximately $76,100 would signal a continuation of the upward trend, while failure to do so keeps trading within a range."

Media reports also pointed to continued institutional accumulation and strong flows into crypto markets, though gains remain capped by intermittent profit-taking near recent highs.

Cryptocurrency Prices Today: Limited Gains for Altcoins

Most altcoins also recorded limited gains on Thursday amid a positive risk environment.

Ethereum, the world’s second-largest cryptocurrency, rose 0.8% to $2,344.

Meanwhile, Ripple, the third-largest cryptocurrency, jumped by about 4% to reach $1.422.