Bitcoin rose to its highest level since early February as signs of easing tensions in the Middle East lifted market sentiment. The world’s largestcryptocurrencycrossed $78,000 for the first time since February 3. It rose as much as 4.1% to $78,343 before giving up some gains. Bitcoin had been moving in a narrow range since the conflict began in late February, but has now broken above that band.
Other cryptocurrencies also gained. Ether rose 3.3% and XRP climbed 2.4%, as investors moved toward riskier assets.
Global markets reacted after Iran said the Strait of Hormuz is now “completely open” for commercial traffic. This reduced fears of supply disruptions. Oil prices and the US dollar fell, while equities moved higher.
“The reopening of the Strait of Hormuz is the risk-on signal the global markets have been waiting for,” said Matt Mena, senior crypto research strategist at 21Shares. “By removing one of the most significant geopolitical choke points in the world, Iran has effectively uncorked a massive wave of liquidity and investor confidence.”
However, some caution remains in the market. Data from derivatives trading shows that many investors are still hedging against downside risks. Funding rates for perpetual futures contracts remain negative, and traders are paying high premiums for protection if Bitcoin falls to $60,000 or even $50,000.
“Reality is that the market needs Hormuz clarity and sustained institutional buying to break this range with conviction. Until then, the direction remains unclear,” said Jasper De Maere, OTC trader at crypto market maker Wintermute. “A sustained ceasefire screams bullish, but each week the Strait remains disrupted from today probably brings an exponentially worse outcome as shocks will start to ripple through supply chains and the global economy.”
At the same time, fresh institutional interest is supporting prices. Strategy Inc. has bought $2.6 billion worth of Bitcoin in the past two weeks, helping strengthen the market, according to Bohan Jiang, senior derivatives trader at FalconX.
Shares of Strategy jumped as much as 16% on Friday, their biggest one-day rise since February 6. Other crypto-linked stocks also rallied, with Coinbase Global Inc. gaining up to 8% and Galaxy Digital Inc. rising more than 10%.
Large financial firms are also entering the crypto space. Charles Schwab has announced plans to launch spot crypto trading this year and said clients could allocate up to 8.8% of their portfolios to Bitcoin. Goldman Sachs has filed for a Bitcoin ETF, while Morgan Stanley recently launched its own Bitcoin-tracking ETF.
Overall, improving geopolitical signals and growing institutional interest are helping lift Bitcoin, though uncertainty in global conditions still remains.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
