Driven by reports of a peace framework between the U.S. and Iran and the restoration of safe passage through the Strait of Hormuz, Bitcoin surged to its highest level in three months on Wednesday.
The White House believes it is on the verge of reaching an agreement with Iran to sign a one-page memorandum of understanding containing 14 points to end the war. Axiosreported, citing four informed sources.
The document, negotiated by U.S. envoys Steve Witkoff and Jared Kushner, will announce a cessation of hostilities and open a 30-day window for detailed talks on issues including transit through the Strait of Hormuz, Iran’s nuclear program, and the lifting of U.S. sanctions.
The Iranian Revolutionary Guard Navy additionally stated: may allow safe passage, according to official media reports, after U.S. forces suspended naval operations in the region, the force entered U.S. airspace through the Strait of Hormuz.
Bitcoin rose 1.4% in the past 24 hours, trading at approximately $82,330.CoinGecko data. The S&P 500 climbed 0.85%, reaching a record high of 7,366.25.
On the other hand, West Texas Intermediate crude oil fell more than 10% to $93 per barrel, removing a key source of inflationary pressure that had previously dampened expectations for rate cuts.
Since the conflict began, Bitcoin has risen 25%, compared to an 8% gain in the S&P 500 and an 11% decline in gold.
Bitcoin's one-day Relative Strength Index (a momentum indicator ranging from 0 to 100) hit 71 on Wednesday, as Bitcoin prices reached their highest level in seven months, last seen when Bitcoin hit its all-time high of $126,080.
Predictive market users countless by... all decrypted parent company Dastan has assigned an 87% probability that Bitcoin’s next major move is a rebound to $84,000 rather than a drop to $55,000—this percentage is higher than Tuesday’s 85%. Meanwhile, Myriad has shifted its view on crude oil prices, with users now assigning a 60% probability that WTI crude oil will surge to $120 per barrel, a decline of nearly 74% from the same time yesterday.
The U.S. expects Iran to respond to several key provisions within 48 hours. Axios Iran stated that no formal agreement has yet been reached and cautioned that only a "fair" deal would be acceptable. The report noted that if negotiations collapse, U.S. forces retain the authority to reinstate blockades or resume military operations.
President Trump emphasized the stakes involved with Truth Social. On Wednesday, Trump said: "Assuming Iran agrees to honor the agreed-upon deal (which may be a big assumption), this already infamous 'epic uprising' will end, and an effective blockade will open the Strait of Hormuz to everyone, including Iran. If they disagree, the bombing will begin, and unfortunately, the scale and intensity of the bombing will be much greater than before."