Bitcoin is sitting at $64,196 on Wednesday. Investors are watching closely as the US and Iran inch toward an interim agreement that could reopen the Strait of Hormuz.
Trump says negotiations are progressing well. The Strait of Hormuz could open soon if talks keep moving forward. Reports suggest the US, Iran, and Oman are working on a temporary 60-day shipping arrangement, though nothing official has been announced yet.
Oil prices fell as traders bet on resumed shipping through the strait. Equity markets rallied as energy supply concerns eased. The diplomatic momentum shifted sentiment across global markets.
Trump told reporters they had an all-day negotiation. "The Strait of Hormuz is going to be open very soon," he said, adding a warning: "If they back out again, they are going to get hit really hard."
Iran's Foreign Ministry spokesperson Esmaeil Baghaei called the talks "positive." He said discussions remain focused on establishing safe shipping lanes while protecting both countries' interests. But Iranian state media warned that military threats from the US could delay any deal.
Bitcoin is also drawing institutional buyers regardless of geopolitics. Spot Bitcoin ETFs recorded over $170 million in net inflows during the latest session, with BlackRock's IBIT alone pulling in roughly $111.4 million. That helps offset recent selling pressure.
On-chain data from CryptoQuant suggests Bitcoin is undervalued based on historical cycles. Current investor participation mirrors activity seen near previous cycle lows. The indicator does not pinpoint an exact bottom, but it signals sentiment remains weak despite Bitcoin's recent recovery.
This material is informational only and does not constitute financial advice or investment recommendations.
