Bitcoin jumps near $79,000 supported by Iran truce extension and institutional demand

Bitcoin rose above the $78,000 level on Wednesday, supported by U.S. President Donald Trump's announcement of an indefinite ceasefire extension with Iran, alongside continued institutional demand flows that boosted market sentiment.

The world's largest digital currency recorded a 3.7% increase to reach $78,712.4 by 09:49 AM ET (13:49 GMT), after touching a 24-hour high of $78,780 in its third consecutive session of gains.

This rise followed Trump's announcement to extend the truce with Iran indefinitely, noting that the decision came partly in response to requests from Pakistani officials to allow more time for peace negotiations in Islamabad. However, this extension remains unilateral, with ambiguity surrounding whether Tehran will officially agree to it.

Despite the truce, tensions have not fully subsided; the United States maintained its naval blockade of Iranian ports, while disruptions continued in the Strait of Hormuz. Nevertheless, markets interpreted these developments as a short-term de-escalation, leading to a decline in oil prices and a weakening of the dollar after previous gains.

Analysts believe that Bitcoin is increasingly behaving as a hybrid asset—combining its status as a high-risk asset with its role as a hedge against geopolitical instability—attracting investment flows when markets price in a mix of relief and uncertainty.

On the other hand, institutional demand provided additional support for prices after MicroStrategy revealed a Bitcoin purchase worth $2.5 billion, in one of its largest deals ever. The company explained that it bought 34,164 units during the week ending April 19, at an average price of approximately $74,395 per coin, raising its total holdings to about 815,000 Bitcoin, with a total value of nearly $61.6 billion.

This deal was primarily funded through capital market activities, as the company raised approximately $2.18 billion from the sale of high-yield preferred shares, in addition to $366 million from the issuance of common stock. These financial instruments, offering yields of nearly 11.5%, have become a primary means for increasing the company's Bitcoin exposure while minimizing the negative effects of ownership dilution.

In contrast, the legal arena saw a notable development as Justin Sun, founder of the Tron network, filed a federal lawsuit in California against the digital currency project affiliated with the Trump family. He accused the project of freezing his tokens and withdrawing his voting rights, while threatening to destroy his assets without notice or legal justification.

Sun stated that he had no choice but to resort to the judiciary, noting that he does not believe Trump would approve of these actions if he were aware of them. Sun had become the largest individual holder of the project's tokens after investing $75 million in late 2024, before his wallet was subsequently blacklisted.

In the broader cryptocurrency market, alternative coins recorded limited gains; Ethereum rose 4.3% to $2,412, while Ripple climbed 1.7% to $1.46.