Bitcoin (BTC) rose above $79,000 at one point, marking its highest level in about 2 1/2 months. Expectations of easing Middle East tensions are seen as lifting risk appetite and driving the gains.

On April 22, blockchain outlet BeInCrypto reported that bitcoin climbed past $79,000 intraday, its highest level since Feb. 3. U.S. stocks also rose the same day, suggesting improved investor sentiment across risk assets.

The immediate trigger for the market rebound was U.S. President Donald Trump’s decision to extend a ceasefire with Iran. Trump extended a two-week ceasefire with Iran a day earlier and signaled the possibility of renewed talks. He said the Iranian government was in a "fragmented" state and needed time to prepare a single negotiating proposal. He kept the blockade of Iranian ports in place, maintaining pressure.

The market reaction was immediate. The Nasdaq index rose more than 1 percent intraday, and bitcoin quickly recovered recent losses. Bitcoin had earlier slipped below $74,000 on April 19 after Iran refused a second peace meeting, but it later rebounded about 7 percent to regain an upward trend.

The possibility of renewed negotiations also influenced the recovery in investor sentiment. Trump said talks between the United States and Iran could resume as early as Friday, and mediators such as Pakistan also raised the possibility of pushing for a new round of negotiations within 36 to 72 hours. Iran’s foreign ministry did not make its participation clear and criticized the U.S. negotiating stance, leaving uncertainty.

This rebound is not explained only by geopolitical factors. Global central banks’ continued increase in gold holdings was also cited as a macro factor aligning with bitcoin’s strength. The Kobeissi Letter said central banks hold about 38,666 tons of gold, equivalent to about 17 percent of all gold mined to date. With a structural preference for safe-haven assets continuing, bitcoin is also benefiting as an alternative store of value.

A surge in China’s silver imports is also seen in the same light. China’s silver imports in March jumped 78 percent from the previous month to 836 tons, an all-time high. It reflected both demand for alternative assets from individual investors and moves by the solar industry to secure raw materials.

Still, market risks have not been fully resolved. U.S. margin debt stood at $1.22 trillion in March, down from the previous month and the lowest since last November. It is seen as a short-term sign of deleveraging, but it is still maintaining a high growth rate on an annual basis and is cited as a source of volatility.

Middle East risks also persist. Iran’s Revolutionary Guards mentioned the possibility of threats targeting undersea internet cables in the Persian Gulf and cloud infrastructure, leaving factors that could heighten tensions. There are concerns that if an actual clash flares up again, shocks could spread anew across financial markets.

As a result, analysts say whether bitcoin rises further depends on the pace of progress in future negotiations. The market is currently reflecting the ceasefire extension and expectations of renewed talks, but with the blockade and geopolitical tensions coexisting, it is likely to remain sensitive to news flow for some time.