Bitcoin stabilized on Wednesday, giving up some of its intraday gains, after Strategy, the largest institutional holder of the cryptocurrency, indicated it might sell part of its holdings.
However, Bitcoin remained near its highest level in three months, while other cryptocurrencies were mostly positive, amid growing hopes of easing tensions between the United States and Iran.
Bitcoin rose 0.5% to $81,368.80 by 9:32 a.m. The world's largest cryptocurrency had earlier hit its highest level in more than three months at $81,718.90.
The positive sentiment was bolstered by US President Donald Trump's announcement that the military would temporarily halt an operation aimed at escorting ships through the Strait of Hormuz, following Iran's military response to that campaign.
Trump added that talks with Iran are making progress, and that the suspension of the operation was intended to facilitate reaching a comprehensive agreement with Tehran.
Trump's remarks came after Iranian officials indicated progress in Pakistan-sponsored talks earlier this week, fueling hopes for a broader de-escalation of the Middle East conflict and pushing high-risk assets higher.
Strategy is considering selling Bitcoin to fund dividend payments.
Strategy Inc. announced that it is considering selling part of its 818,334 bitcoin reserve to help fund dividend payments and debt obligations.
Michael Saylor said the company will likely sell some Bitcoin to fund a dividend payout aimed at stabilizing the market, noting that the latest STRETCH preferred share offering saw strong demand.
Strategy had financed its Bitcoin purchases primarily through the issuance of debt and preferred shares, which made the company vulnerable to the risk of defaulting on its financial obligations.
However, Saylor indicated that the impact of the sales would be limited, and that the company intends to buy more Bitcoin than it will sell.
However, this move represents a significant shift from Saylor's previous stance of never selling Bitcoin. This shift comes after Strategy& posted a massive operating loss of $14.47 billion in the first quarter, largely due to unrealized losses on its Bitcoin holdings.
Cryptocurrency prices today: Altcoins stabilize as attention focuses on tensions with Iran
Other cryptocurrency prices moved within a narrow to high range, with attention focused on the possibility of easing US-Iranian tensions, which contributed to a strong cryptocurrency rally over the past week.
Ether, the world's second-largest cryptocurrency, fell 0.4% to $2,369.43, while XRP rose 1.3% to $1.4254.
Solana and Cardano added 2.9% and 3.5% respectively, while BNB rose by 1.3%.
In the meme currency market, DOGE rose by 3.4%, while $TRUMP added 2.8%.
