Bitcoin moved sharply higher on Wednesday, reaching its strongest level since late January as investors responded positively to signs of easing geopolitical tensions involving Iran.

The world’s largest cryptocurrency briefly climbed near $79,500, posting gains of almost 5% during the session. Other digital assets also advanced, including Ether, which recorded gains of more than 4%.

Market sentiment improved after U.S. President Donald Trump announced an extension of a ceasefire tied to the Iran conflict, helping support broader risk appetite across financial markets.

Analysts noted that Bitcoin continues to show technical strength, with traders closely watching resistance levels near the mid-$80,000 range. Some market observers believe the cryptocurrency could maintain upward momentum if geopolitical and macroeconomic conditions remain stable.

The rally in digital assets came alongside strong performance in equity markets. The S&P 500 extended its monthly gains as corporate earnings continued to exceed expectations despite ongoing concerns surrounding global trade routes and Middle East instability.

Compared with traditional safe-haven assets, Bitcoin has recently demonstrated stronger relative performance. While gold prices have weakened over recent months, Bitcoin has continued to trend higher, attracting renewed attention from both institutional and retail investors.

Investors are also monitoring developments around the Strait of Hormuz and broader energy markets, as prolonged disruptions could continue influencing inflation expectations and overall market volatility. Yahoo Finance