Bitcoin’s price reached $78,072 on Wednesday morning, reflecting an increase of 2.2% over the past 24 hours and 4.3% for the week. This surge follows President Donald Trump’s announcement to extend the Iran ceasefire indefinitely, coupled with a significant Bitcoin purchase by Strategy.
The cryptocurrency’s upward momentum was bolstered by Strategy’s acquisition of 34,164 BTC, valued at approximately $2.54 billion, marking the company’s largest purchase since November 2024. With this latest acquisition, Strategy now holds a total of 815,061 BTC, having invested $61.6 billion at an average cost of $75,527 per coin. Currently, with Bitcoin priced at $77,541, the firm is seeing modest profits for the first time in several months.
Other cryptocurrencies also experienced gains; Ether rose by 2.1% to $2,366, BNB increased by 1.3% to $640, and Solana climbed 1.8% to $87. In contrast, stablecoins and Tron saw slight declines, with losses of 0.1%.
In traditional markets, S&P 500 futures rose by 0.5%, and Nasdaq 100 futures gained 0.6% following Trump’s announcement, although the main indices had closed lower on Tuesday amid wavering negotiations. Brent crude oil prices remained around $98 per barrel, while the MSCI Asia Pacific Index fell by 0.7% as investors assessed the ongoing Middle East tensions.
Trump attributed the stalled negotiations to a “seriously fractured” leadership in Tehran, stating that the U.S. would refrain from new attacks while maintaining its blockade in the Strait of Hormuz.
Recent data from CoinShares indicated a strong inflow into global crypto funds, totaling $1.4 billion last week, the highest since mid-January. Bitcoin attracted $1.12 billion of this total, while Ethereum received $328 million. However, XRP and Solana experienced outflows of $56 million and $2 million, respectively, despite their price increases.
Analysts note that Bitcoin is currently trading above the realized price of short-term holders, approximately $69,400, which historically reduces the risk of liquidation cascades if market sentiment shifts. A recent Nomura survey revealed that 65% of Japanese institutional investors now include Bitcoin in their portfolios for diversification, with many planning allocations of 2% to 5% over the next three years.
The ability of Bitcoin to maintain its position above $77,000 during the European trading session will depend on how markets react to the ceasefire extension and ongoing disruptions in the Strait of Hormuz. A sustained breakout above $80,000 could signal a shift towards a short squeeze, while a drop below $75,000 might indicate that the market has already priced in the ceasefire news and will require new catalysts for further rally.
Bitcoin's price has surged past $78,000 following President Trump's announcement to extend the Iran ceasefire and a major BTC purchase by Strategy. Other cryptocurrencies also saw gains, while traditional markets reacted positively to the news.