Bitcoin edges higher around 1% on Middle East peace hopes

But the crypto currency remained pinned within a tight trading range, as cryptocurrency markets grappled with a recent high-profile hack

Bitcoin edged higher on Wednesday, extending a mild recovery amid growing hopes that a deal to reopen the Strait of Hormuz was close.

But the crypto currency remained pinned within a tight trading range, as cryptocurrency markets grappled with a recent high-profile hack and more sales by top corporate Bitcoin holder Strategy.

Bitcoin was last up 0.8% to $64,829.1 by 20:58 GMT.

Optimism over a potential deal to reopen the key waterway sparked deep losses in oil prices, while also sparking risk-on moves in markets.

But crypto took fleeting support from this trend, with investors seen favouring artificial intelligence stocks with clearer fundamentals over speculative plays.

Appetite for tech stocks was also furthered by some strong earnings from the sector over the past week, while deep July losses in the sector drew in bargain buyers.

Spot Bitcoin exchange-traded funds saw improving capital inflows in August after logging some inflows in July, which were preceded by two months of heavy outflows.

Bitcoin ETFs logged total inflows of $381.6 million so far in August, after $172.4 million inflows in July.

Sentiment towards crypto was seen improving marginally amid a broader uptick in risk appetite. But the sector was still nursing deep losses so far in 2026, with Bitcoin remaining about 50% off an October record high.

Circle on Wednesday ate into losses and eventually eked out a gain. The company reported higher second-quarter revenue, driven by expanding use of its USDC stablecoin among businesses and institutions beyond crypto trading. The stock initially rose on the results before reversing course.

USDC circulation rose 19% to $73.3 billion, while onchain transaction volume jumped 151% year-over-year. The reserve return rate — the yield generated by the cash and short-term Treasuries backing USDC — fell 66 basis points to 3.5%.

Revenue and reserve income rose 7% year-over-year to $701.3 million for the quarter ended June 30. Circle reported net income of $0.18 per share attributable to common shareholders, ahead of the $0.17 analysts had expected, according to LSEG-compiled data.