Bitcoin rose above $78,000 on Wednesday, supported by US President Donald Trump's extension of the ceasefire with Iran, while institutional demand also boosted sentiment.
The world’s largest cryptocurrency traded up 2.7% at $78,018.4 by 10:49 (Saudi time), after rising to $78,430.4 in the past 24 hours.
Bitcoin was on track to make gains for the third day in a row.
Trump announces extension of ceasefire with Iran
US President Trump announced an indefinite extension of the ceasefire with Iran, saying it was partly driven by requests from Pakistani officials seeking more time for peace negotiations in Islamabad.
However, the decision remains unilateral, with continued uncertainty about whether Tehran will formally accept the extension.
Despite the ceasefire, tensions have not completely subsided. The United States has maintained a naval blockade of Iranian ports, while unrest continues around the Strait of Hormuz.
However, financial markets interpreted this development as a near-term de-escalation. Oil prices declined, and the US dollar weakened after recent gains.
Analysts say Bitcoin is increasingly trading as a hybrid asset between a risky asset and a hedge against geopolitical instability, attracting flows when traditional markets are pricing in both comfort and lingering uncertainty.
Strategy bought $2.5 billion worth of Bitcoin last week
Prices were also supported by renewed institutional demand. Strategy Inc. (NASDAQ:MSTR) disclosed a $2.5 billion Bitcoin purchase, one of the largest buyouts on record.
The company said it bought 34,164 bitcoins during the week ending April 19 at an average price of about $74,395 per coin, bringing total holdings to about 815,000 coins purchased for about $61.6 billion.
The acquisition was primarily funded through capital markets activity, with Strategy raising approximately $2.18 billion through sales of its high-yield preferred shares and an additional $366 million through an issuance of common shares.
These premium securities, which offer returns of around 11.5%, have become a key funding tool, allowing the company to expand its exposure to Bitcoin while attempting to limit the dilution resulting from the share issuance.
Cryptocurrency prices today: Altcoins rise, Ethereum up 3%
Most alternative currencies also traded higher on Wednesday, but gains were limited.
Ethereum, the world's second-largest cryptocurrency, rose 3.2% to $2,391.53.
XRP, the world's third-largest cryptocurrency, advanced 1.3% to $1.46.
Solana, Cardano and Polygon each rose by 2.5%.
Among the meme currencies, Dogecoin rose by 2.3%.
