Bitcoin settles near $78,000 amid ongoing Hormuz tensions

Bitcoin stabilized above the $78,000 level on Thursday as investors balanced ongoing geopolitical tensions in the Strait of Hormuz with the extension of the ceasefire between the United States and Iran.

The world's largest cryptocurrency was trading slightly up by 0.2% at $78,166.2 by 02:46 AM ET (06:46 GMT). Prices had previously surpassed the $79,000 mark on Wednesday, marking their highest levels since early February.

Ongoing Washington-Tehran tensions support oil

President Donald Trump extended the ceasefire with Iran on Tuesday, retreating from plans for new military strikes. However, uncertainty persists as Tehran has not officially agreed to the extension and has criticized the continued U.S. naval blockade of its trade routes.

The Iranian Revolutionary Guard seized two container ships in the Strait of Hormuz on Wednesday, tightening its grip on the vital energy corridor. Additionally, Iranian forces opened fire on three vessels in the area. This sustained tension kept global energy markets on edge, with oil prices stabilizing above $100 per barrel. Conversely, Asian equity markets and Wall Street futures declined on Thursday morning.

Institutional support boosts cryptocurrencies

Despite pressure on high-risk assets, cryptocurrencies received relative support driven by a return of institutional demand. MicroStrategy (NASDAQ: MSTR) continued its crypto-buying policy, announcing a new multi-billion dollar deal this week.

GSR launches first multi-asset ETF

GSR announced on Wednesday the launch of its first exchange-traded fund (ETF) named the Crypto Core3 ETF (BESO), marking its entry into the asset management field.

- The U.S.-listed fund offers actively managed exposure to Bitcoin, Ethereum, and Solana.

- It includes the potential for additional returns through staking mechanisms.

- The company explained that the fund will be rebalanced weekly based on research signals, with a 1% management fee, targeting the growing demand for diversified investment products in the digital currency market.

Altcoins decline as oil rises

In contrast, most altcoins declined on Thursday as rising oil prices weighed on market risk appetite.

- Ethereum, the second-largest cryptocurrency, fell 1.7% to $2,350.41.

- Ripple, the third-largest, dropped 2.3% to $1.42.