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Bitcoin increased marginally on Monday as traders awaited additional cues on the US -Israel’s war on Iran following a possible Houthi escalation. Last week, the largest cryptocurrency in the world dropped back below $70,000 due to weak risk appetite and uncertainty surrounding a significant US regulatory measure.

Markets were now anticipating a possible intensification of the Iran war after the Iran-backed Houthis in Yemen launched missiles at Israel over the weekend. Given their ability to launch attacks in the Red Sea, the Houthis’ involvement could create a new front in the conflict.

Separately, US President Donald Trump stated that talks with Iran were proceeding smoothly and that a ceasefire might be imminent, though he did not specify a timeframe. Additionally, Trump claimed that as a favor to the US, Iran had permitted 20 oil tankers to cross the Strait of Hormuz. Iran has mostly denied so far.

Tehran accused the US of preparing a ground invasion, following Washington’s deployment of thousands of troops to the Middle East over the weekend. Even though Bitcoin has fared better than other assets since the start of the Iran War, it hasn’t made much progress, and its losses over the weekend erased most of its gains through March.

Investor appetite for riskier assets has been significantly impacted by uncertainty surrounding the Iran War, as markets have been concerned about the inflationary consequences of rising oil prices. Any aggressive actions by international central banks to counteract inflation driven by energy are bad news for speculative assets like cryptocurrency. It’s possible that Strategy, the biggest corporate Bitcoin holder, didn’t increase its holdings last week.