Bitcoin rose to its highest level since early February after a series of statements from the United States and Iran sparked optimism that the Middle East conflict was moving towards a resolution. Bitcoin broke through the upper limit of the fluctuation range since the outbreak of the war in late February, rising above the $78,000 mark for the first time since February 3. Bitcoin rose 3.8% to $78,155.
Other digital assets also moved higher, with ether rising 3.3% and XRP rising 2.4%, reflecting a broader pick-up in risk appetite. Stocks rose as traders increased exposure after Iran announced the Strait of Hormuz was "fully open" to commercial shipping. Oil prices and the dollar fell.
“The reopening of the Strait of Hormuz is the risk appetite signal global markets have been waiting for,” said Matt Mena, senior crypto research strategist at 21Shares. “By lifting one of the world’s most important geopolitical bottlenecks, Iran is actually freeing up massive liquidity and boosting investor confidence.”