Hormuz Reopening Sends Bitcoin to $64K as Stocks Hit Record High

Bitcoin briefly surpassed $64,000 on Tuesday as traders reacted to news that the Strait of Hormuz may reopen soon. The waterway has been closed due to US-Iran tensions, but US Treasury Secretary Scott Bessent suggested traffic could resume as early as Wednesday.

Oil prices dropped in response, with WTI crude trading 4.8% lower and Brent crude down 4.6%. This sent stocks soaring, with the S&P 500 index hitting a new record high of 7,713 and its market cap reaching $70 trillion for the first time.

Analysts believe resolution of the Hormuz closure will influence future Federal Reserve policy decisions, particularly regarding interest rates. The markets currently see 56.7% odds of a 0.25% rate hike at the September meeting.