Bitcoin hits a month high as risk appetite rallies globally

Bitcoin jumped to its highest level in a month, exceeding $74,000 on Tuesday, recovering from weekend losses, supported by improved risk appetite and falling oil prices, which supported the broader financial markets.

The world's largest digital currency was trading up 4.7% at $74,193.7 by 01:58 AM US Eastern Time, approaching mid-March levels again, before the escalation of the conflict with Iran.

This rise came amid a broader rally in high-risk assets, as U.S. stocks recorded strong gains on Monday, with the S&P 500 rising by more than 1%, while the Nasdaq climbed as investors flocked to technology stocks supported by continued optimism regarding AI demand.

Asian markets also rose in early Tuesday trading, in a sign of improving overall investor sentiment globally.

Cryptocurrency markets received additional support from oil prices falling below $100 per barrel after a sharp rally, which boosted demand for high-risk assets.

Signs of continuing diplomatic channels between the United States and Iran also contributed to calming the markets, despite the failure of weekend talks to achieve a breakthrough. Reports indicated that both sides are considering holding a new round of talks in the coming days, aimed at extending the fragile ceasefire.

This diplomatic movement comes at a time when tensions remain high, with the United States imposing a naval blockade on Iranian ports and Tehran warning of a response.

Short covering operations also contributed to supporting the rise, as traders closed their bearish bets as prices rose, which reinforced the upward momentum.

In a related context, Nasdaq-listed company MicroStrategy (MSTR) announced that it purchased 13,927 Bitcoin units worth approximately $1 billion over the past week, funded partly by the sale of preferred shares.

The company explained that it sold about 10.03 million shares of its variable-yield Class A perpetual preferred stock, achieving net proceeds of approximately $1 billion, which were used to purchase Bitcoin at an average price of about $71,902 per unit.

After this transaction, the company's holdings rose to 780,897 Bitcoin, at a total cost of $59.02 billion.

Regarding other digital currencies, Ethereum, the second largest cryptocurrency, recorded a jump of 8% to reach $2,361.92, while Ripple rose by 3.6% to $1.36.