Bitcoin Taps New Highs as Oil Prices Plummet Amid US-Iran Tensions Easing
Bitcoin (BTC) continued its upward momentum on Tuesday, reaching new highs as markets reacted to news of potential US-Iran tensions easing. According to a statement from US Treasury Secretary Scott Bessent, there was a chance that traffic through the Strait of Hormuz could restart by Wednesday.
The comments from Bessent came after US President Donald Trump confirmed dialogue with Iran over reopening the waterway. The news sent oil prices plummeting, with WTI and Brent crude trading 4.8% and 4.6% lower, respectively, at the time of writing.
US stocks futures gained prior to the open, resulting in a new record high for the S&P 500 index, which reached $7,713 with a market cap of $70 trillion. Analysts noted that resolution of the Hormuz closure would influence market sentiment on future Federal Reserve policy decisions.
With BTC/USD climbing to $64,176 on Bitstamp, marking maximum daily gains of around 1%, analysis from CryptoQuant reported 'strong accumulation' among investors. 0.7% of the BTC supply now belongs to investors with a cost basis between $62,000 and $65,000.