Bitcoin ticked higher on Thursday as investor appetite for risk improved amid hopes of a deal to reopen the Strait of Hormuz. Stronger inflows into exchange-traded funds (ETFs) also supported the world’s largest cryptocurrency.
Bitcoin was up 0.23 percent at $64,474 as of 12:17 GMT.
However, the broader cryptocurrency market remained subdued, with investor sentiment still cautious after steep losses earlier this year and as artificial intelligence-related stocks continued to attract a larger share of investment flows.
Mixed corporate earnings pressure market
The crypto sector continued to face pressure from mixed corporate earnings. Following weaker-than-expected results from Strategy and Coinbase last week, Circle’s shares declined overnight after the company reported second-quarter revenue that fell short of market expectations.
On the geopolitical front, hopes for an agreement to reopen the Strait of Hormuz remained a key driver of market sentiment this week after Iran indicated it was nearing a deal with Oman.
U.S. President Donald Trump also said discussions with Iran were progressing well, although Tehran continued to deny that any direct negotiations with Washington had taken place.
The possibility of reopening the strategic waterway weighed on oil prices, raising expectations of improved crude supplies from the region and easing concerns over a potential energy-driven spike in inflation.
Although oil shipments have no direct impact on Bitcoin or the broader cryptocurrency market, shifts in energy prices often influence investor sentiment, which can affect demand for risk-sensitive assets such as cryptocurrencies.
Bitcoin has traded largely sideways since the outbreak of the U.S.-Israel conflict with Iran in late February, remaining confined to a narrow range around the $60,000 level. The cryptocurrency is still down nearly 50 percent from its record high reached in October.
Read: Bitcoin rises to $63,955 as investors eye U.S.-Iran negotiations, corporate earnings
Bitcoin ETFs attract $626 million net inflows
Despite the subdued price action and lingering concerns over potential share sales by Strategy, investor demand for spot Bitcoin exchange-traded funds (ETFs) strengthened in early August.
According to SoSoValue data, spot Bitcoin ETFs attracted net inflows of $626 million so far this month, a sharp increase from the $172.4 million recorded in July.
However, it remains uncertain whether the renewed momentum will continue, particularly after Bitcoin ETFs experienced nearly $7 billion in cumulative net outflows during May and June.
The broader cryptocurrency market traded mixed on Thursday as investors assessed a lack of strong positive catalysts alongside a series of mixed corporate earnings reports from the sector.
Ether, the world’s second-largest cryptocurrency, gained 1.4 percent to $1,902.58, while XRP declined 1.53 percent to $1.0473.
Solana traded little changed, whereas Cardano fell 0.90 percent and BNB eased 0.98 percent
Among meme tokens, Dogecoin and $TRUMP each slipped around 1.30 percent.
