Hormuz Talks Bolster Crypto Prices Amid Fed Rate Hike Worries

Bitcoin and Ethereum prices rose on Thursday as investors returned to riskier assets due to ongoing negotiations around the Strait of Hormuz. The talks between Iran could lead to a partial reopening of the waterway, reducing concerns about energy shocks.

A weaker-than-expected July jobs report from ADP also contributed to the increase in crypto prices by lowering expectations for a potential US interest rate hike at the Federal Reserve's next meeting.

Bitcoin opened at $64,602.32, up 0.9% from Wednesday's opening price. Ethereum opened at $1,906.96, up 2.1% from Wednesday's opening price. However, both cryptocurrencies remain far below their record highs: Bitcoin is roughly half the value of its all-time high and Ethereum is trading at less than half of its peak.

August has historically been a challenging month for Bitcoin, with an average decline of around 4.3% according to historical data. The Federal Reserve's interest-rate outlook will remain a key factor in determining market performance, as well as US jobs and inflation data.