Bitcoin Hits New August Highs as Markets React to Hormuz Reopening Hopes

Bitcoin's price climbed to new August highs on Tuesday as markets reacted positively to news that the Strait of Hormuz might reopen soon. The US-Iran tensions have been easing, and investors are optimistic about a resolution.

The S&P 500 index hit a new record high of $7,713, with its market cap reaching $70 trillion for the first time. This comes as oil prices dropped to their lowest levels since July 13, following comments from US Treasury Secretary Scott Bessent that traffic through the Strait of Hormuz could restart as soon as Wednesday.

BTCUSD climbed to $64,176 on Bitstamp, marking maximum daily gains of around 1%. Analysts noted that resolution of the Hormuz closure will influence market sentiment when it comes to future Federal Reserve policy decisions. Markets see 56.7% odds of a 0.25% rate hike at the September FOMC meeting.

The Bitcoin price action remained subdued compared to stocks, with BTCUSD held in check by its 21-day simple moving average (SMA) at $64,388. With price rangebound, analysis from CryptoQuant reported 'strong accumulation' among investors, indicating absorption rather than capitulation.