Bitcoin edges lower as oil surge dents risk sentiment

Broader crypto prices were largely weak as well, as sentiment towards the sector stayed lukewarm, particularly after sharp losses earlier this year and as capital flows increasingly favour artificial intelligence stocks

Bitcoin edged slightly lower on Thursday amid an overall dent to risk sentiment from a surge in oil prices.

Broader crypto prices were largely weak as well, as sentiment towards the sector stayed lukewarm, particularly after sharp losses earlier this year and as capital flows increasingly favour artificial intelligence stocks.

The cryptocurrency was last down 0.4% to $64,457.4 by 21:18 GMT.

Anticipation of a deal to reopen the Strait of Hormuz was a major point of focus this week, after Iran signalled it was close to reaching an agreement with Oman. U.S. president also said talks with Iran were going well, although Tehran largely denied that any direct negotiations with the U.S. have taken place.

Iran and Oman have been working on a framework agreement to manage traffic through the vital waterway. Iran’s Fars News said the initial text of the Hormuz plan was under review by authorities, citing parliament member Alireza Salimi. According to the plan, passage of U.S., Israeli, and other hostile vessels through the vital waterway would be prohibited until compensation was paid, Fars said.

Away from the Middle East, despite a mostly muted price performance and looming risks from more Strategy sales, capital inflows into spot Bitcoin exchange-traded funds gained momentum in early-August.

Spot Bitcoin ETFs saw inflows of $626.0 million so far in August, rising sharply from a $172.4 million inflow in July, data from SoSoValue showed.

Still, it remained to be seen whether the inflows would persist, especially given that Bitcoin ETFs lost a total of nearly $7 billion in outflows in May and June.