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Bitcoin approaches $65,000 amid Hormuz hopes
Сryptocurrency
Bitcoin has been largely stagnant since the US-Israeli war against Iran began in late February, remaining in a tight trading range around $60,000.
Bitcoin rose on Thursday, boosted by improved risk appetite as investors pinned their hopes on a deal to open the Strait of Hormuz, as well as improved capital inflows into exchange-traded funds (ETFs), supporting the world's largest cryptocurrency.
However, the broader crypto market remained hesitant overall, with sentiment in the sector remaining muted – especially after steep losses earlier this year and as AI stocks increasingly attract capital.
Mediocre corporate earnings in the crypto sector continue to pour in: following disappointing results from Strategy and Coinbase last week, Circle reported second-quarter revenue overnight that missed expectations.
Bitcoin rose 0.8% to $64,739.1 as of 9:18 AM ET. A deal on the Strait of Hormuz is on the horizon, Trump declared negotiations with Iran successful.
Expectations for a deal to open the Strait of Hormuz became the main topic of the week after Iran announced it was close to an agreement with Oman.
US President Donald Trump also stated that negotiations with Iran were progressing well, although Tehran generally denied any direct negotiations with the American side.
Nevertheless, the prospect of opening the Strait of Hormuz pushed oil prices down, which in turn fueled optimism about improving oil supplies from West Asia and preventing the looming surge in energy-related inflation.
While physical oil flows have little direct impact on Bitcoin and cryptocurrencies, they significantly influence market sentiment, which in turn affects speculative assets. Bitcoin has been largely stagnant since the US-Israeli war against Iran began in late February, remaining in a tight trading range around $60,000. The cryptocurrency is still trading roughly 50% below its all-time high reached in October.
Inflows into Spot Bitcoin ETFs Accelerate in August
Despite generally subdued price performance and looming risks associated with possible further selling by Strategy, inflows into spot Bitcoin ETFs gained momentum in early August.
According to SoSoValue, spot Bitcoin ETFs have seen $626.0 million in inflows since the beginning of August, a sharp contrast to the $172.4 million inflows in July.
However, it remains to be seen whether this inflow will continue, especially given that Bitcoin ETFs collectively lost approximately $7 billion in outflows in May and June.
Crypto Market Today: Altcoins Lagging Bitcoin
The broader crypto market showed mixed performance amid mediocre corporate earnings and a lack of clear positive signs.
Ether, the second-largest cryptocurrency by market cap, rose 2.2% to $1,912.90, while XRP fell 1.5% to $1.0506.
Solana remained unchanged, Cardano fell 2.8%. BNB lost 0.8%.
Among memecoins, Dogecoin remained flat, while $TRUMP fell 0.9%.