Bitcoin surged near $78,000 on Thursday as global market sentiment rebounded on strong earnings reports from tech companies and renewed hopes for peace talks between the United States and Iran.
Bitcoin was trading around $77,651 in early trading after hitting a daily high of around $78,165 in the past 24 hours.
The world's largest cryptocurrency appears to have recovered some of its losses this week after being pressured by rising US Treasury yields and geopolitical uncertainty in the Middle East.
Market risk sentiment improved after US President Donald Trump said talks with Iran were in the final stages.
The statement raised hopes that tensions around the Strait of Hormuz could be eased, easing concerns about global energy supply disruptions.
Meanwhile, a strong earnings report from NVIDIA was also a major catalyst for the rise in risky assets.
The AI chipmaker reported quarterly revenue of $81.6 billion and forecast revenue of around $91 billion for the second quarter, beating market expectations. The performance revived positive sentiment towards the technology and artificial intelligence (AI) sectors.
A rise in global technology stocks also helped support the crypto market as investors regained their appetite for riskier assets. Semiconductor stocks in Asia also posted significant gains following Nvidia's better-than-expected financial results.
However, Bitcoin's gains were still seen as limited as investors remained cautious about the outlook for US interest rates.
Federal Reserve (Fed) meeting minutes for April showed US central bank officials were still concerned about persistent inflationary pressures, maintaining expectations that interest rates could be raised again by the end of the year.
Bitcoin is also still struggling to maintain momentum above the psychological level of $80,000 after previously surging above $82,000 earlier in the month on optimism over geopolitical developments in the Middle East.
