Hormuz Hopes Boost Stocks, Bitcoin Stays Rangebound

The Strait of Hormuz reopening hopes lifted the S&P 500 to a record high on August 4, but Bitcoin's response was more muted.

BTC regained the $64,000 level and maintained a limited upward trend, but its upside momentum lagged behind the stock market. According to blockchain media outlet Cointelegraph, BTC rose as high as $64,176 on Bitstamp, up about 1 percent on the day.

The sharp drop in international oil prices and revival in risk appetite drove the move. US Treasury Secretary Scott Bessent mentioned that a deal to reopen the Strait of Hormuz 'could happen today or tomorrow', while President Donald Trump said talks were under way and that reopening the strait could be possible 'as soon as tomorrow'.

The decline in oil prices boosted expectations of easing inflationary pressure, which supported US stocks. The S&P 500 index rose to 7,713, setting a record high, while the total market capitalisation of US stocks topped $70 trillion for the first time.