Bitcoin Rises Amid Iran Deal Uncertainty, Gold Correlation Grows

Bitcoin's price rose 1.3% in the last 24 hours to around $73,700, with retail sentiment on Stocktwits trending from 'extremely bearish' to 'bearish'. The increased volatility and correlation patterns of Bitcoin are being closely watched by analysts, who note that the cryptocurrency is acting more like digital gold.

Eric Balchunas, a Bloomberg ETF analyst, pointed out that BlackRock's spot Bitcoin ETF has outperformed broader U.S. equities since the Iran conflict began and has generated more than double the returns of the SPDR S&P 500 ETF since the ETF filing. The analyst noted that large institutional investors and financial advisors are primarily interested in Bitcoin's potential to function as an alternative asset similar to gold.

The Strait of Hormuz, one of the world's most important energy shipping routes, remains a key focus for markets. An agreement guaranteeing uninterrupted passage through the waterway could ease concerns about global oil supply disruptions and reduce pressure on inflation expectations.