Bitcoin Hits 10-Week High After Iran Reopens Strait of Hormuz

• Bitcoin surged above $78K after Iran reopened the Strait of Hormuz.

• ETF inflows and institutional buying strongly supported the Bitcoin rally.

• The market remains cautious despite bullish momentum and ongoing geopolitical uncertainty.

Bitcoin — BTC, recently surged sharply on Friday after fresh geopolitical news shook global markets. Prices broke above a key resistance level and pushed past $78,000. The move followed Iran’s announcement about reopening the Strait of Hormuz for commercial shipping. Market sentiment shifted quickly as traders reacted to easing tensions. Strong institutional inflows also supported the rally across crypto assets. The combination of political clarity and capital inflows fueled a fast upward breakout.

In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.

— Seyed Abbas Araghchi (@araghchi) April 17, 2026

Geopolitics Sparks a Risk-On Market Shift

Bitcoin climbed to $78,343, marking the highest level since early February. The rally followed comments from Iran’s Foreign Minister confirming full access to the Strait of Hormuz. US President Donald Trump also supported the development through a public statement. He described progress in peace negotiations as nearly complete. This news triggered a broader risk-on reaction across global markets.

Ethereum gained 3.3% while XRP rose 2.4%. Brent crude oil dropped around 10%, easing inflation concerns. Equities also reacted positively, with the S&P 500 adding trillions in value over recent weeks. Traders interpreted the developments as reduced supply chain risk. Bitcoin recorded a 4.1% daily gain and a 5% weekly recovery. The breakout above $78,000 attracted short-term momentum buyers.

Market sentiment improved quickly after weeks of uncertainty. However, derivatives data still shows caution among traders. Negative funding rates suggest hedging remains active in futures markets. ETF inflows added further strength to the move. US Bitcoin ETFs recorded $664 million in net inflows in a single day. Ethereum ETFs also extended a seven-day inflow streak. Institutional participation continues to grow at a steady pace.

Institutional Demand and Market Uncertainty Collide

Large institutions played a major role in recent price strength. BlackRock’s Bitcoin trust added $284 million in a single day. Total inflows over eight days reached $1.34 billion. Strategy Inc. also increased holdings significantly, purchasing $2.6 billion in Bitcoin recently. Stock performance reflected this momentum with strong daily gains. Other major financial players joined the shift toward crypto exposure.

Goldman Sachs filed for a Bitcoin ETF for the first time. Charles Schwab announced plans for spot trading in 2026. Morgan Stanley already launched a Bitcoin tracking ETF. These moves signal growing acceptance across traditional finance. Despite strong inflows, uncertainty remains in the market. The ceasefire timeline ends on April 22. The United States continues to maintain a naval blockade. Iran warned of possible retaliation if restrictions continue.

Negotiations around frozen funds and uranium stockpiles remain unresolved. Derivatives data reflects caution among traders. Put options at lower price levels show strong demand. Many participants still hedge against downside risk. Polymarket traders assign a high probability to $80,000 Bitcoin in April. This mix of optimism and caution defines current market conditions.