Bitcoin Hits Three-Month High as US-Iran Tensions Ease

Bitcoin surged to a three-month high on Tuesday, reaching $81,392.4, as tensions between the US and Iran appeared to ease. The world's largest cryptocurrency had been impacted by concerns over potential supply disruptions in the Strait of Hormuz, but the US' assertion that its 'Project Freedom' operation was defensive in nature helped calm the market.

The US Secretary of War Pete Hegseth stated that the ceasefire with Iran was not over and that American forces would not need to enter Iranian waters or airspace. This reassurance, combined with positive commentary from Iranian foreign minister Abbas Araghchi, contributed to a boost in risk sentiment.