S&P 500 hits historic $70T milestone as Hormuz developments keep Bitcoin steady at $64K
Expectations surrounding the Strait of Hormuz's potential reopening to oil shipments drove the S&P 500 to an unprecedented $70 trillion market capitalization as Bitcoin maintained positions above $64,000.
Bitcoin reached fresh August peaks heading into Tuesday's Wall Street trading session as financial markets anticipated another de-escalation in US-Iran geopolitical tensions.
Key points:
- Bitcoin (BTC) advances incrementally as positive sentiment regarding Strait of Hormuz reopening drives equities to unprecedented all-time peaks.
- Crude oil prices decline to levels not witnessed since July 13 with potential resumption of oil traffic anticipated for Wednesday.
- BTC trades within range defined by two daily moving averages while market analysis identifies "strong accumulation."
S&P 500 achieves unprecedented $70 trillion market capitalization milestone
Information from TradingView indicated BTC/USD advancing to $64,176 on the Bitstamp exchange, representing peak daily appreciation of approximately 1%.
Crude oil markets responded swiftly following comments from US Treasury Secretary Scott Bessent indicating that shipping activity through the Strait of Hormuz might resume as early as Wednesday.
Speaking with CNBC, Bessent stated that there existed "a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position" concerning the US-Iran conflict amid continuing negotiations between both nations.
These remarks followed US President Donald Trump's confirmation one day earlier regarding discussions about reopening the critical waterway, with Trump suggesting this development could materialize "as soon as tomorrow."
At the time of writing, WTI and Brent crude posted declines of 4.8% and 4.6%, respectively, reaching their lowest price points since July 13.
Futures for US equities climbed ahead of the opening bell, subsequently propelling the S&P 500 index to an unprecedented record high of 7,713, marking the first instance of its market capitalization crossing the $70 trillion threshold.
Market analysts highlighted the potential resolution of the Hormuz closure situation as a significant factor likely to shape market expectations regarding upcoming Federal Reserve monetary policy determinations. Against a backdrop of an increasingly hawkish division among Fed officials concerning interest rate policy, financial markets are currently pricing in 56.7% probability that central bank policymakers will authorize a 0.25% rate increase at the September policy meeting, according to information from CME Group's FedWatch Tool.
"Chairman Kevin Warsh's limited guidance on the Fed's reaction function means upcoming data, oil prices and the bond market will have a greater influence on the market's expectations for the policy path,"
Bloomberg macro strategist Michael Ball
"Strong" BTC accumulation observed within persistent local trading range
Price movements for Bitcoin demonstrated relatively muted performance in comparison to equity markets as BTC/USD crossed above $64,000.
The trading pair continued to face resistance at its 21-day simple moving average (SMA) positioned at $64,388, with the 50-day SMA serving as a support level when examined on hourly timeframes.
Despite price action remaining confined to a relatively tight range, analytical data from blockchain analytics platform CryptoQuant identified "strong accumulation" patterns among market participants. Approximately 0.7% of Bitcoin's total supply, corresponding to roughly 155,000 coins, is currently held by investors with acquisition cost bases ranging between $62,000 and $65,000.
"This points to absorption rather than capitulation, as buyers accumulated into weakness,"
CryptoQuant report on Monday