Bitcoin edged lower on Thursday as a surge in oil prices dented broader risk sentiment, while a separate reading of the drop tied it to stronger-than-expected U.S. jobless claims data. Spot Bitcoin ETFs, meanwhile, pulled in far more money in early August than they did in July.
Bitcoin slipped Thursday as a surge in oil prices dented broader risk sentiment. The token last traded at $64,457.4, down 0.4% by 21:18 GMT, with crypto sentiment staying lukewarm as capital increasingly favors artificial-intelligence stocks, according to Investing.com.
Hormuz Strait Deal Keeps Traders On Edge
Anticipation of a deal to reopen the Strait of Hormuz was a major point of focus this week after Iran signaled it was close to an agreement with Oman. President Donald Trump said talks with Iran were going well, though Tehran largely denied any direct negotiations had taken place.
Iran's Fars News reported that the initial text of the Hormuz plan was under review, citing parliament member Alireza Salimi. Fars said passage of U.S., Israeli, and other hostile vessels through the waterway would be barred until compensation is paid; entry would run through a northern corridor near the Iranian coast, exit through a southern corridor near Oman, before both stop after a set deadline in favor of a middle corridor that Iran would manage on entry and jointly manage with Oman on exit. If accurate, these terms would most likely be unacceptable to Washington.
Spot Bitcoin ETF Inflows Rebound
Away from the Middle East, spot Bitcoin ETFs pulled in $626.0 million so far in August, according to SoSoValue data cited by Investing.com. That is sharply higher than July's $172.4 million inflow. It remains to be seen whether the inflows persist, given that Bitcoin ETFs shed nearly $7 billion in outflows during May and June.
Jobless Claims Stoke Rate Hike Bets
CoinGape put Thursday's drop at 0.69%, with Bitcoin trading at $64,384.27 at press time, after the token tested but never closed above the $64,800-$65,000 level following a rally from near $62,400.
The pullback tracked stronger-than-expected U.S. labor data. Economists had forecast 204,000 initial jobless claims, but the Department of Labor reported just 199,000 for the week ending August 1. The four-week moving average also declined to 198,750, a decrease of about 4,500 from the previous revised average of 203,250. Traders now price a 54.71% chance of a 25-basis-point rate hike at the Fed's September meeting, per CME FedWatch Tool data, adding to pressure tied to interest rate expectations.
Sources: Investing.com, CoinGape
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