Bitcoin Extends Gains as Institutional Demand Surges

Bitcoin's price continues to rise as institutional demand shows signs of a comeback. According to SoSoValue data, spot BTC ETFs recorded net inflows of $211.49 million on Tuesday, marking the second consecutive day of positive flows.

This comes as hopes for a US-Iran diplomatic breakthrough and the potential reopening of the Strait of Hormuz ease geopolitical and energy-market concerns, boosting risk sentiment.

US Treasury Secretary Scott Bessent stated that the US could reach a deal with Iran to reopen the Strait of Hormuz by Tuesday or Wednesday this week. The OPEC+ decision on Sunday to increase oil production from September also helps ease supply concerns, dragging crude prices to a fresh low since June 13.

These developments have eased geopolitical and energy-market concerns, while lower prices of crude could help reduce inflationary pressures and expectations for a more hawkish Federal Reserve (Fed). Market participants are currently pricing in a 58.9% probability of a Fed rate hike in September, down from 64.7% on Tuesday.