Bitcoin Trades Above $64,000 as Market Weighs Geopolitical News, ETF Inflows

Bitcoin saw a modest gain on Wednesday, continuing a mild rebound as broader market risk appetite was cautiously lifted by reports of a potential agreement to reopen the Strait of Hormuz. The world's largest cryptocurrency remains confined to a narrow trading range, facing pressure from recent industry security breaches and persistent selling from key corporate holders.

As of 9:05 AM ET, Bitcoin was up 0.9% at $64,300.6.

Geopolitical Hopes Offer Limited Support

Market sentiment was buoyed by a report from Axios on Tuesday suggesting the U.S., Oman, and Iran were in negotiations for a deal to reopen the critical waterway, with an announcement possible as soon as Wednesday. U.S. officials have indicated a deal is near, with President Donald Trump stating in an interview Tuesday that an agreement was "very close."

However, some Iranian media reports cited by the source warned of potential delays due to U.S. pressure in the region, and Tehran has largely denied direct negotiations, stating that communication is occurring through Omani mediators. While optimism around the deal has weighed on oil prices and fostered a risk-on mood, the positive spillover into crypto has been minimal as investors show a preference for assets like AI-focused technology stocks.

Mixed Signals from ETF Flows

A notable bright spot for the digital asset has been the recent performance of spot Bitcoin exchange-traded funds (ETFs). After experiencing two consecutive months of significant outflows, these funds have seen a reversal in investor sentiment.

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• August has so far recorded $381.6 million in net inflows.
• This follows $172.4 million in net inflows for the month of July.

Despite this improvement, the crypto sector remains under pressure in 2026, with Bitcoin still trading approximately 50% below its all-time high set in October, according to the source. The market continues to digest the impact of a recent high-profile hack and selling from corporate holder MicroStrategy.

Altcoins and Corporate News

The broader cryptocurrency market showed mixed performance. Ethereum, the second-largest token, gained 0.7% to $1,875.57, while XRP fell 0.8%. In other corporate news, shares of Circle (CRCL) fell over 3% in pre-market trading after the company released its second-quarter earnings.

Circle reported earnings per share of $0.18, beating LSEG analyst estimates of $0.17, on revenue that grew 7% year-over-year to $701.3 million. The growth was driven by increased adoption of its USDC stablecoin, which saw its circulation climb 19% to $73.3 billion. However, the reserve yield backing USDC fell 66 basis points to 3.5%.