Bitcoin declined on Thursday but remained above the $72,000 level as a combination of regulatory optimism and improving market sentiment fueled strong gains in the world’s largest cryptocurrency, though risks stemming from the Iran conflict continued to linger.
The cryptocurrency rose more than 5 percent to $72,366.1 by 06:28 GMT, after reaching a one-month high of $73,243 on Wednesday.
As of 7:40 GMT, Bitcoin was down 0.62 percent at $72,237.
Market sees little progress on passing the CLARITY Act
Bitcoin gave up part of its gains after U.S. stock index futures turned negative on Thursday morning, as ongoing hostilities involving the United States, Israel and Iran kept markets cautious.
Rising oil prices also heightened concerns about the conflict’s potential inflationary impact.
The world’s largest cryptocurrency had surged on Wednesday, building on earlier gains this week as a strong session on Wall Street lifted risk appetite. Bargain buying also supported the cryptocurrency after it recorded steep losses in February.
The broader crypto market was further supported after U.S. President Donald Trump urged lawmakers to quickly pass a long-delayed regulatory framework for the crypto sector, while also criticizing major U.S. banking groups for opposing yield payments on stablecoins.
Trump’s remarks fueled expectations that cryptocurrencies could receive greater regulatory support in the United States. However, there has been little immediate progress toward passing the CLARITY Act, which is intended to establish a clearer market structure for the crypto industry.
Bitcoin also took cues from overnight gains on Wall Street, after reports suggested Iran was seeking dialogue with Washington, raising hopes that the conflict could ease. But those reports were denied by Tehran, keeping investor sentiment cautious.
Read: Bitcoin dips below $66k as Middle East tensions shake crypto market
Broader market tracks Bitcoin gains
Broader cryptocurrency prices moved higher on Thursday, following Bitcoin’s rally as the market recovered some of the losses recorded in the previous month.
The world’s second-largest cryptocurrency, Ether, climbed 5.5 percent to $2,117.48, while XRP gained 3.01 percent to $1.4165.
Solana rose 3.56 percent to $90.560, Cardano was up 2.99 percent, and BNB also advanced 1.69 percent to $651.10
Among memecoins, Dogecoin jumped 6.44 percent, while $TRUMP edged up 1.72 percent.
