Global stock markets surged to new highs on Wednesday, fueled by renewed enthusiasm for artificial intelligence, but the price of Bitcoin remained stagnant above $64,000. The anticipated agreement regarding the Strait of Hormuz failed to break the deadlock, leaving the cryptocurrency market in a state of significant divergence.
Ethereum fell to $1,864, down 2% for the week, making it the only major digital asset to decline. Other notable performers included Ripple at $1.07, Dogecoin dropping to 7 cents, Tron edging down to 33 cents, and Solana holding steady at $73.60. In contrast, Binance Coin rose to $598, posting a 5% gain over the past seven days, marking the best performance among the group. Hyperliquid's HYPE also advanced 3% to $56, with a weekly gain of 3%. These mixed moves suggest a sharp rotation of capital within the crypto space rather than a broad inflow of new funds.
Traditional financial markets, however, were robust. The MSCI World Index climbed 0.4%, while the Asia-Pacific index jumped 2.2%. The S&P 500 and Dow Jones Industrial Average extended their rallies, and the Australian stock market also hit new highs. On the corporate front, SK Hynix surged 8%, and Nvidia (NVDA.US) rose over 2%. While AMD (Advanced Micro Devices) (AMD.US) and SpaceX both fell in after-hours trading following their earnings reports—down roughly 9% and 7% respectively—they still managed to finish the regular session in positive territory.
On the geopolitical front, Washington, Tehran, and Oman are expected to announce a deal to reopen the Strait of Hormuz on Wednesday. This news sent Brent crude oil down 1.1% to $78.50, while US Treasuries and gold both saw gains. Despite these macro tailwinds, Bitcoin's current price is still 49% below its all-time high of $126,000. For three consecutive trading days, lower oil prices and easing rate hike expectations have failed to boost the digital currency, indicating that the resistance is internal to the market. If the agreement's implementation this week fails to trigger a rebound, it would confirm that buyer interest has completely evaporated from the crypto space.