Bitcoin climbs to $71K as crude tumbles on possible global oil reserve release

Bitcoin climbed nearly 5% on Tuesday, rising above $71K as risk assets rebounded amid signs that geopolitical tensions in the Middle East may be easing.

The rally followed a sharp reversal in oil markets. Crude prices dropped more than 11% Tuesday, falling to around $83 after surging close to $120 a barrel on Monday following supply disruptions linked to the Iran conflict.

The decline came after reports that the International Energy Agency will hold an emergency meeting of member countries Tuesday to discuss a potential coordinated release of strategic oil reserves to stabilize markets.

The rally followed a sharp reversal in oil markets. Crude prices dropped more than 11% Tuesday, falling to around $83 after surging close to $120 a barrel on Monday following supply disruptions linked to the Iran conflict.

The decline came after reports that the International Energy Agency will hold an emergency meeting of member countries Tuesday to discuss a potential coordinated release of strategic oil reserves to stabilize markets.

As energy prices pulled back, investors rotated back into risk assets. Crypto markets moved higher across the board, with Bitcoin trading near $71.5K, while Ethereum rose to about $2,080 and Solana climbed to roughly $88, both gaining around 4%. XRP outperformed with a roughly 5% rise to about $1.43.

Equities also advanced during the session. The S&P 500 gained about 0.4% while the Nasdaq Composite rose roughly 0.5%.

Crypto related stocks joined the rally. Circle climbed about 7%, while Figure surged around 15%. Japan based Bitcoin treasury firm Metaplanet gained roughly 8%, and crypto mining company Bitfarms rose about 7%.