Bitcoin Prices Surge 5% Amid U.S.-Iran Ceasefire, Institutional Investors Remain Cautious

Bitcoin prices have been experiencing significant fluctuations in recent days. On Wednesday morning, the cryptocurrency briefly rose to $71,700, marking its highest point since March 18. This price surge coincided with President Trump's announcement that the U.S. and Iran agreed to a two-week ceasefire.

The White House announced on Tuesday evening that the U.S. and Iran had reached an agreement on a ceasefire, which has been met with positive reactions in the market. The closure of the Strait of Hormuz by Iran had caused extreme volatility in crude oil prices and global supply chain disruptions. The Strait's reopening is expected to have a significant impact on the global economy.

However, despite the price rally, cryptocurrency exchange-traded funds (ETFs) saw net outflows of $159 million on April 7. This includes BlackRock's IBIT shedding $17.11 million, Fidelity's FBTC losing $47.85 million, and Grayscale pulling $41.89 million. Only Valkyrie's BRRR recorded a modest inflow of $2.32 million.