Bitcoin remained close to its highest level since late January on Wednesday, supported by improving investor sentiment as diplomatic developments in the Middle East raised hopes of a potential easing in regional tensions.
The world’s largest cryptocurrency was trading 0.5% lower at around $85,804 during morning trading in London after briefly climbing above $87,000 earlier in the session.
Bitcoin’s recent momentum has been partly linked to signs of progress in diplomatic efforts. Investor sentiment strengthened on Tuesday after U.S. President Donald Trump said American officials had a “very good meeting” with Iranian representatives on the sidelines of the United Nations General Assembly in New York.
Elsewhere, Saudi Arabia reportedly began testing its East-West oil pipeline on Tuesday as authorities worked toward restoring flows following drone attacks earlier this month. The Wall Street Journal reported that operations could resume as soon as this week.
Bitcoin climbed to $87,315 on Monday, its highest level since late January. The move was supported in part by renewed investment in spot Bitcoin exchange-traded funds.
According to CoinGlass data, Bitcoin ETFs recorded nearly $1 billion in net inflows on Monday. JPMorgan estimated that the daily inflow represented the strongest ETF flow session since early October 2025, shortly before Bitcoin reached its previous record high.
Bitcoin has gained approximately 11.5% so far this month. While the increase remains below the cryptocurrency’s August rally, the latest advance has come despite a recent Federal Reserve rate increase and the failure of the cryptocurrency-focused CLARITY Act to clear a key Senate vote.
The relationship between Bitcoin and gold has also shifted in recent sessions. Ipek Ozkardeskaya, senior analyst at Swissquote, said the positive correlation between the two assets has weakened and, at times, reversed.
According to Ozkardeskaya, gold has remained under pressure while Bitcoin has attracted buying interest alongside technology stocks. She said the divergence could indicate that broad macroeconomic factors are becoming less dominant as investors increasingly focus on individual asset fundamentals.
Bitcoin’s latest performance therefore reflects a combination of renewed ETF demand, shifting relationships with traditional assets and changing expectations around global economic and geopolitical conditions.
