Bitcoin Soars Above $64,800 Amid Institutional Demand and Middle East Stability

Bitcoin's price surge continued on Thursday as it broke above the $64,800 level. The cryptocurrency's growth is supported by sustained institutional demand and improving appetite for risk assets.

The Strait of Hormuz, a critical oil shipping route in the Middle East, may soon reopen following reports that Iran and Oman are nearing an agreement to regulate shipping through the waterway. This development has contributed to lower crude prices and eased pressure on energy markets, reducing inflation risks and lessening the need for further Federal Reserve policy tightening.

US economic data released on Thursday reinforced expectations of a potential interest rate hike at the September meeting, but market expectations fell to 55% from 67% earlier in the week. The shift weighed on the US dollar and supported demand for risk assets, including Bitcoin.

Net inflows into US spot Bitcoin ETFs reached $244.42 million on Wednesday, marking the third consecutive session of positive inflows this week. Analysts believe sustained or stronger inflows could provide additional momentum for Bitcoin's recovery and extend its current rally.