Crypto-linked stocks and bitcoin surged to near $78,000 on Friday as progress toward ending the Iran war and reopening the Strait of Hormuz boosted global investor risk appetite.

Key Points

• Bitcoin reached a two-month high of approximately $78,000 following reports of peace talks and the reopening of the Strait of Hormuz.
• Digital asset treasury firms led the market rally, with American Bitcoin (ABTC) rising 21% and Strategy (MSTR) gaining 13%.
• Crude oil prices dropped 13% to near $80 per barrel as geopolitical tensions eased, helping to alleviate global inflation concerns.
• Major altcoins including Ethereum, Solana, and XRP posted gains between 4% and 5% during the session.
• The S&P 500 and Nasdaq indices both reached new record highs as broader markets responded to the positive geopolitical developments.

Why it Matters

The stabilization of energy supply routes through the Strait of Hormuz has significantly reduced geopolitical risk, triggering a broad rotation back into high-beta assets. This shift suggests that investors are moving away from defensive positions as inflation fears subside and market liquidity improves.