Bitcoin edged closer to the US$80,000 mark on Monday as investors monitored fresh developments in the US–Iran standoff over the Strait of Hormuz.

The leading cryptocurrency rose as much as 1.6 per cent to US$79,488, its highest level since January 31, when it last traded above US$80,000, according to Bloomberg.

It was changing hands at about US$79,100 by 12pm in Singapore.

Ether, the second-largest digital asset, also advanced, gaining up to 1.7 per cent.

Asian equities climbed on Monday after Axios reported that Iran had proposed a new deal to the US aimed at reopening the Strait of Hormuz.

The potential reopening of the key shipping route has been a major driver of volatility in oil prices and broader risk assets amid ongoing tensions involving the US and Israel.

Crude oil also trimmed earlier gains during the session.

“The risks are real. US-Iran peace deal odds have collapsed, a macro overhang that could reprice risk assets broadly,” said Rachael Lucas, an analyst at BTC Markets. “US$80,000 is where many recent buyers are approaching breakeven, which is typically where selling pressure emerges as they rotate out of their positions.”

Bitcoin has been steadily edging back toward the US$80,000 level in recent sessions, as traders covered short positions and institutional demand strengthened.