$64K Bitcoin as Markets Bet on Hormuz Reopening
Bitcoin has hit new highs in August, rising to $64,176 on Bitstamp as markets bet on US-Iran tensions easing. The price action is largely driven by optimism over the reopening of the Strait of Hormuz, which could happen as soon as Wednesday according to US Treasury Secretary Scott Bessent.
The Strait's closure has had a significant impact on oil prices, with WTI and Brent crude trading 4.8% and 4.6% lower respectively at their lowest levels since July 13. The reopening of the waterway could signal a return to normalized positions in the US-Iran conflict, which is contributing to rising hopes for future Federal Reserve policy decisions.
As markets anticipate a potential rate hike from the Fed, analysts note that resolution of the Hormuz closure will influence market sentiment on future interest rates. With 56.7% odds of a 0.25% rate hike at its September meeting, according to CME Group's FedWatch Tool, markets are closely watching data and oil prices for their impact on policy expectations.
Bitcoin price action remains subdued in comparison to stocks as $BTC/USD holds between two daily moving averages. Onchain analytics platform CryptoQuant reports 'strong accumulation' among investors, with 0.7% of the $BTC supply belonging to those with a cost basis between $62,000 and $65,000.