Bitcoin (BTC) has reclaimed the $71,000 level after a volatile period that saw it dip below $69,000, with traders reacting to conflicting reports surrounding the Middle East conflict. The asset's price swings were heavily influenced by geopolitical headlines, including statements from former U.S. President Donald Trump and subsequent denials from Iranian officials.
The recovery follows a broader market correction last week, where Bitcoin failed to hold above $76,000. The initial pullback was driven by a combination of the Federal Reserve's decision to keep interest rates unchanged and escalating regional tensions. After a weekend bounce, selling pressure resumed, pushing BTC back to $69,000 on Tuesday before the latest rebound.
The total cryptocurrency market capitalization added approximately $20 billion in a single day, approaching $2.53 trillion, while Bitcoin's dominance held steady near 56.5%.
Altcoin performance was mixed. While major tokens like Ethereum (ETH), BNB, XRP, and Solana (SOL) posted modest gains, Stellar's XLM and HYPE were notable outperformers. XLM rose about 8% to $0.18, and HYPE advanced more than 6% to trade above $40.
The AI-linked token SIREN experienced extreme volatility, rebounding over 100% in a day to trade near $2.20 after a sharp plunge from its record high of $3.65. This move has drawn increased scrutiny from the community regarding the token's utility and wallet concentration.
