Bitcoin remained near $64,000 on Wednesday, August 5, despite global stock markets climbing to fresh all-time highs. While investors continued pouring money into equities on renewed optimism surrounding artificial intelligence (AI), the cryptocurrency market failed to follow the broader rally.
BTC gained less than 1% over the past 24 hours and has traded almost flat throughout the week, reflecting subdued momentum even as macroeconomic conditions improved.
Ethereum (ETH) slipped to around $1,864, making it the only major cryptocurrency posting a weekly loss. XRP, Dogecoin, and Tron also edged lower, while Solana traded sideways. BNB stood out by rising more than 1% to around $598, making it one of the week’s strongest-performing major cryptocurrencies. Hyperliquid’s HYPE token also posted modest gains.
Global equities continued their record-breaking run, with the MSCI All Country World Index reaching another all-time high after the S&P 500 and Dow Jones also closed at record levels. Asian markets joined the rally, supported by strong gains in AI-related technology stocks.
Investor sentiment also improved after reports that the United States, Iran, and Oman were close to an agreement to reopen the Strait of Hormuz. The news pushed Brent crude oil lower and strengthened expectations that easing inflation could reduce pressure for further interest rate hikes.
Despite these favorable macroeconomic developments, Bitcoin showed little reaction. Normally, lower oil prices, easing rate expectations, and stronger equity markets create a supportive environment for cryptocurrencies, but digital assets have remained largely range-bound.
Institutional Demand Holds
Although Bitcoin has struggled to break above $64,000, institutional demand remains relatively resilient. Continued interest in spot Bitcoin ETFs has helped support prices despite weaker retail participation, making ETF fund flows one of the key indicators traders are watching.
Bitcoin’s muted response despite record-high stocks, lower oil prices, and easing rate expectations suggests crypto is currently being driven more by internal market dynamics than macroeconomic optimism. If Bitcoin still fails to rally after any official Strait of Hormuz agreement, it could signal weakening buying momentum. Traders should closely monitor both ETF inflows and macro developments for clues on Bitcoin’s next major move.
