S&P 500 sets new record...Why can't Bitcoin (BTC) rally despite Strait of Hormuz good news?

▲ Iran, U.S., Bitcoin (BTC)/ChatGPT generated image

Expectations for the reopening of the Strait of Hormuz pushed the S&P 500 to an all-time high, but Bitcoin (BTC) remained confined to a narrow range, lagging behind the risk asset rally.

According to crypto media outlet Cointelegraph on August 4 (local time), Bitcoin failed to find a clear direction around $64,000. In contrast, the S&P 500 rose 1.8% during the day, setting a new all-time high, and the Nasdaq 100 surged 3.2%.

U.S. Treasury Secretary Scott Bessent stated that the U.S. and Iran are close to an agreement to reopen the Strait of Hormuz. Bessent said, “There is a possibility of an agreement coming out today or tomorrow to open the strait and normalize the dispute.”

As expectations grew for an easing of tensions surrounding the Strait of Hormuz, international oil prices plummeted. Brent crude fell more than 5% to below $80 per barrel, and West Texas Intermediate (WTI) crude dropped to around $75 per barrel.

U.S. stocks also benefited from positive corporate earnings. Palantir Technologies (PLTR) jumped more than 27% after announcing earnings that exceeded market expectations. Caterpillar (CAT) also rose more than 6% on stronger-than-expected results.

Bitcoin failed to extend its upward trend despite falling oil prices and record-breaking stock market highs. Negotiations between the U.S. and Iran regarding the Strait of Hormuz are ongoing, but a final agreement has not been confirmed. The market is closely watching the schedule for the strait's reopening and the results of subsequent negotiations.

[Article Key Summary]

-The S&P 500 hit an all-time high on expectations of the Strait of Hormuz reopening, but Bitcoin remained in a narrow range.

-Brent crude fell more than 5% to below $80 per barrel.

-The U.S. and Iran are negotiating the reopening of the Strait of Hormuz, but a final agreement has not been confirmed.

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