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- Bitcoin remains above $64K as traders monitor reports of a temporary Hormuz shipping agreement.
- Strong Bitcoin ETF inflows and rising network activity continue supporting market sentiment.
- Any confirmed geopolitical breakthrough could strengthen risk appetite, though uncertainty remains.
Bitcoin remained above $64,000 on Tuesday as investors weighed reports that the United States, Iran, and Oman are nearing a temporary agreement to restore commercial shipping through the Strait of Hormuz. While global equities climbed and oil prices eased on the news, the cryptocurrency market has taken a more measured approach, with traders waiting for confirmation that the proposal will move forward.
The reported deal has renewed optimism that easing geopolitical tensions could improve risk appetite across financial markets. However, digital assets have yet to deliver the broad rally seen during previous developments tied to the region.
Hormuz Proposal Could Ease Market Concerns
According to reports, the proposed arrangement would temporarily reopen shipping routes through the Strait of Hormuz for 60 days. Vessels entering the Gulf would travel through Iranian waters, while outbound traffic would pass through Omani waters without transit fees. The proposal also includes plans to begin clearing naval mines before negotiations on a longer-term agreement.
The Strait of Hormuz is one of the world’s most important energy corridors, making any reduction in regional tensions significant for global markets. Lower oil prices typically reduce inflation concerns and can improve sentiment toward higher-risk assets such as cryptocurrencies.
Still, investors remain cautious after a similar proposal reportedly failed just weeks earlier when attacks on commercial vessels resumed.
Bitcoin Eyes Key Resistance as On-Chain Activity Improves
Bitcoin traded just above $64,000, gaining less than 1% over the past 24 hours. Ethereum posted modest gains, while XRP, Dogecoin, and Chainlink lagged slightly. Meanwhile, BNB and Hyperliquid (HYPE) outperformed the broader market.
On-chain data also points to improving network activity. Analyst Ali Charts noted that weekly active Bitcoin addresses have climbed roughly 20% to more than 720,000. The analyst identified $64,300 as an important technical level, suggesting a sustained four-hour close above that price could pave the way toward $65,500 and potentially $66,500.
ETF Demand Continues to Support Bitcoin
Institutional interest has remained resilient despite geopolitical uncertainty. Spot Bitcoin ETFs recorded net inflows of $170.09 million at the start of the week, with seven funds attracting new capital and no recorded outflows. Ethereum ETFs, however, experienced net outflows totaling $11.42 million.
Steady ETF demand continues to provide a supportive backdrop for Bitcoin, even as investors monitor developments in the Middle East.
A formal agreement to reopen the Strait of Hormuz could strengthen confidence across financial markets by lowering energy-related risks and encouraging investment in risk assets. Combined with healthy ETF inflows and improving blockchain activity, Bitcoin could see renewed momentum in the near term.
Also Read: Kraken Parent and Franklin Templeton Launch Major Tokenized Finance Push
However, the proposed arrangement remains temporary, and any disruption to negotiations or renewed regional tensions could quickly reverse market sentiment. Until greater clarity emerges, traders are likely to remain focused on both geopolitical headlines and key technical levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
