Bitcoin (BTC) Surges Past $78K as Iran Reopens Hormuz Strait Amid Peace Talks

Key Takeaways

BTC climbed above $78,000 for the first time in over two months following Iran’s announcement regarding the Strait of Hormuz
Iran’s top diplomat announced that commercial shipping traffic can now pass freely during the ceasefire
President Trump indicated that negotiations between the US and Iran are nearly finalized with core elements agreed upon
Crude oil prices plummeted approximately 10% to roughly $85 per barrel following the announcement
Bitcoin ETFs in the United States attracted $664 million in net capital on April 17, marking the fourth consecutive day of positive flows

Bitcoin exploded beyond the $78,000 threshold on Friday, April 17, marking its strongest price level since the beginning of February. The rally was triggered after Iran’s Foreign Minister Seyed Abbas Araghchi announced via X that the strategic Strait of Hormuz remains “completely open” to commercial shipping traffic throughout the duration of the existing ceasefire agreement.

President Donald Trump validated the development through his Truth Social platform, stating that negotiations to resolve the US-Israel-Iran conflict are “mostly complete.” He indicated that fundamental components have been agreed upon, with the remaining issues anticipated to be settled within the weekend.

Bitcoin reached an intraday peak of $78,343, representing approximately 4.1% growth within the trading session. Throughout the week, BTC recovered around 5%, based on information from CoinMarketCap and TradingView.

Alternative digital assets experienced similar upward momentum. Ethereum appreciated 3.3% while XRP advanced 2.4%, contributing to a widespread risk-on sentiment throughout international markets.

Brent crude oil contracts declined roughly 10% to approximately $85 per barrel. The S&P 500 index also rallied, accumulating $7 trillion in market value during the previous three weeks, as noted by The Kobeissi Letter.

Bitcoin ETF Capital Flows and Corporate Accumulation

Wu Blockchain disclosed on X that US-based spot Bitcoin ETFs accumulated $664 million in net capital on April 17, representing the fourth consecutive session of positive inflows. Spot Ethereum ETFs attracted $127 million, continuing a seven-day streak of inflows.

Bitcoin Archive shared on X that BlackRock’s iShares Bitcoin Trust has continuously accumulated Bitcoin for eight consecutive trading sessions, acquiring $284 million worth on April 17 exclusively. BlackRock’s cumulative purchases have reached $1.34 billion across the eight-day period.

Strategy Inc. has additionally accumulated $2.6 billion in Bitcoin during the past two weeks. Strategy’s stock price surged as much as 16% on Friday, representing its largest single-session increase since February 6.

Coinbase Global shares climbed as much as 8% while Galaxy Digital appreciated over 10% during the same trading session.

Traditional Finance Enters Crypto

Goldman Sachs submitted documentation for a Bitcoin ETF this week, representing its initial direct entry into cryptocurrency investment products. Charles Schwab revealed intentions to introduce spot cryptocurrency trading capabilities in 2026 and indicated that clients might consider allocating up to 8.8% of investment portfolios to Bitcoin.

Morgan Stanley introduced its proprietary Bitcoin-tracking ETF last week, establishing itself as the first major banking institution to launch such a product.

Matt Mena, senior crypto research strategist at 21Shares, characterized the reopening of the Strait of Hormuz as “the risk-on signal the global markets have been waiting for.”

Bohan Jiang, senior derivatives trader at FalconX, noted that Strategy’s accumulation strategy has provided market support throughout recent trading periods.

Geopolitical Risks Persist

The current ceasefire agreement is scheduled to conclude on April 22. US authorities have indicated that the naval blockade will remain operational until a comprehensive agreement is finalized. Iran has issued warnings about potentially closing the Strait once more if the blockade persists.

Axios additionally reported that US officials are evaluating the release of up to $20 billion in frozen Iranian assets in return for Iran relinquishing its enriched uranium inventory.

Derivatives market indicators suggest traders maintain a cautious stance. Funding rates for perpetual futures contracts registered negative on Friday. Put options positioned at $60,000 and $50,000 strike prices are commanding substantial premiums, reflecting hedging behavior.

Polymarket participants assessed the probability of Bitcoin reaching $80,000 during this month at 65% as of Friday, April 17.