Bitcoin rose above the $78,000 level on Wednesday, supported by U.S. President Donald Trump's announcement of an indefinite ceasefire extension with Iran, alongside continued institutional demand flows that boosted market sentiment.

The world's largest digital currency recorded a 3.7% increase to reach $78,712.4 by 09:49 AM ET (13:49 GMT), after touching a 24-hour high of $78,780 in its third consecutive session of gains.

This rise followed Trump's announcement to extend the truce with Iran indefinitely, noting that the decision came partly in response to requests from Pakistani officials to allow more time for peace negotiations in Islamabad. However, this extension remains unilateral, with ambiguity surrounding whether Tehran will officially agree to it.

Despite the truce, tensions have not fully subsided; the United States maintained its naval blockade of Iranian ports, while disruptions continued in the Strait of Hormuz. Nevertheless, markets interpreted these developments as a short-term de-escalation, leading to a decline in oil prices and a weakening of the dollar after previous gains.

Analysts believe that Bitcoin is increasingly behaving as a hybrid asset—combining its status as a high-risk asset with its role as a hedge against geopolitical instability—attracting investment flows when markets price in a mix of relief and uncertainty.

On the other hand, institutional demand provided additional support for prices after MicroStrategy revealed a Bitcoin purchase worth $2.5 billion, in one of its largest deals ever. The company explained that it bought 34,164 units during the week ending April 19, at an average price of approximately $74,395 per coin, raising its total holdings to about 815,000 Bitcoin, with a total value of nearly $61.6 billion.

This deal was primarily funded through capital market activities, as the company raised approximately $2.18 billion from the sale of high-yield preferred shares, in addition to $366 million from the issuance of common stock. These financial instruments, offering yields of nearly 11.5%, have become a primary means for increasing the company's Bitcoin exposure while minimizing the negative effects of ownership dilution.

In contrast, the legal arena saw a notable development as Justin Sun, founder of the Tron network, filed a federal lawsuit in California against the digital currency project affiliated with the Trump family. He accused the project of freezing his tokens and withdrawing his voting rights, while threatening to destroy his assets without notice or legal justification.

Sun stated that he had no choice but to resort to the judiciary, noting that he does not believe Trump would approve of these actions if he were aware of them. Sun had become the largest individual holder of the project's tokens after investing $75 million in late 2024, before his wallet was subsequently blacklisted.

In the broader cryptocurrency market, alternative coins recorded limited gains; Ethereum rose 4.3% to $2,412, while Ripple climbed 1.7% to $1.46.

Oil prices rose on Wednesday, recovering from earlier losses following reports that at least three container ships came under fire in the Strait of Hormuz, alongside the stalling of peace talks between the United States and Iran.

Brent crude contracts climbed by 73 cents, or 0.7%, to reach $99.21 per barrel, while U.S. West Texas Intermediate (WTI) rose by approximately 59 cents, or 0.7%, to $90.26. Both benchmarks had recorded gains of nearly 3% during Tuesday's session.

Reports indicated that at least three container ships were targeted by gunfire in the Strait of Hormuz. Meanwhile, the Iranian Revolutionary Guard Corps Navy announced the seizure of two vessels, alleging "maritime violations," and their transport to the Iranian coast, according to the semi-official Tasnim news agency.

Both Iran and the United States have imposed restrictions on vessel movement in the Strait, which, prior to the outbreak of war in late February, transported about 20% of the world's oil and liquefied natural gas (LNG) supplies.

U.S. President Donald Trump had earlier announced an indefinite extension of the ceasefire with Iran hours before its scheduled expiration. However, the announcement appeared unilateral, and it remained unclear whether Iran or Israel would agree to it, especially given the absence of both parties from the peace talks that were scheduled to be held in Pakistan.

In Europe, Ukrainian President Volodymyr Zelenskyy stated that the "Druzhba" pipeline for Russian oil transport is ready to resume operations. Conversely, energy sector sources indicated that Russia intends to halt Kazakh oil exports to Germany via the pipeline starting May 1.

Markets are awaiting the release of weekly inventory data from the U.S. Energy Information Administration (EIA) later on Wednesday. Preliminary data from the American Petroleum Institute (API) showed a decline in crude inventories by approximately 4.5 million barrels last week, with decreases also noted in gasoline and distillate stocks.

Analysts anticipate a draw of 1.2 million barrels from crude inventories for the week ending April 17.

Analysts at PVM stated that if these draws are confirmed and U.S. oil and refined product exports remain strong, it will be seen as evidence of consumers in Europe and East Asia racing to secure oil supplies by any means possible.

The U.S. dollar stabilized on Wednesday near one-week highs amid continued uncertainty regarding the Middle East conflict, even after U.S. President Donald Trump announced an indefinite extension of the ceasefire with Iran.

Despite this announcement, it remained unclear whether Iran or Israel—the primary U.S. ally in the two-month-old war—would agree to the extension. Prospects for resuming peace talks remained uncertain as the vital Strait of Hormuz for oil shipments stayed largely closed, with reports indicating three vessels came under fire.

The U.S. dollar index, which measures the currency's performance against a basket of six major currencies, was stable at the 98.341 level.

Dominic Banning, head of G10 FX strategy at Nomura, stated that it is difficult to form a strong conviction at this time, but noted that both parties seem more inclined toward making progress rather than escalation, though this outlook remains cautious.

Most other currencies remained unchanged; the euro stabilized at $1.1745, while the British pound reached $1.3511. Data released Wednesday showed that Britain’s annual inflation rate rose to 3.3% in March compared to 3.0% in February, marking the first signal of the Middle East war's impact on prices.

Against the Japanese yen, the dollar fell slightly to 159.22 yen following data showing that Japanese exports grew for the seventh consecutive month, overcoming the effects of the conflict in the Gulf.

In another context, investors monitored statements by Kevin Warsh, the White House nominee for Federal Reserve Chair, during his Senate confirmation hearing, which were interpreted as leaning toward monetary hawkishness.

Warsh emphasized that he made no pledges to President Trump regarding interest rate cuts, attempting to reassure lawmakers that he would maintain the central bank's independence while pursuing broad reforms.

Junya Tanase, chief FX strategist at JPMorgan in Tokyo, said the highlight of Warsh's remarks was his emphasis on Federal Reserve independence and his rejection of pressure to cut rates, reflecting a hawkish tone.

However, he noted that the impact of these statements was limited as market expectations did not change significantly, suggesting that dollar strength and rising U.S. bond yields were primarily driven by higher oil prices linked to tensions with Iran.

Traders scaled back expectations regarding the timing of interest rate cuts, as markets remain unconvinced of the possibility of monetary easing before 2027. There is a 58.5% probability that the Federal Reserve will keep interest rates unchanged through the April meeting of next year, according to the CME Group's FedWatch tool.

In the cryptocurrency market, Bitcoin rose by 3.28% to $78,225, and Ethereum climbed 3.22% to $2,392.

Gold prices rose in the European market on Wednesday, moving up from a one-week low supported by the current slowdown in the American currency. This comes after U.S. President Donald Trump announced an indefinite extension of the ceasefire with Iran.

Statements by Federal Reserve nominee Kevin Warsh during a Senate hearing were interpreted as leaning toward a hawkish stance; however, markets are still waiting for more evidence regarding the path of U.S. interest rates.

Price Overview

- Gold Prices Today: Gold metal prices rose by 1.1% to ($4,772.41), from an opening level of ($4,719.37), and recorded a low of ($4,715.69).

- Upon price settlement on Tuesday, gold prices lost about 2.2% in their second consecutive daily loss, reaching a one-week low of 4,668.74 dollars per ounce due to Iran's refusal to participate in the peace negotiations scheduled in Pakistan.

The U.S. Dollar

The dollar index fell on Wednesday by 0.2%, retreating from a high of 98.57 points, reflecting a slowdown in the American currency's levels against a basket of major and minor currencies.

Beyond correction and profit-taking, U.S. dollar levels are declining due to a slowdown in safe-haven buying as markets welcomed Trump's decision to extend the ceasefire with Iran.

Iranian War Updates

- U.S. President Donald Trump announced the extension of the ceasefire with Iran indefinitely.

- Pakistan, the mediator in the peace talks, requested the ceasefire extension.

- Trump: "We will extend the ceasefire until Iran presents its proposal and discussions conclude one way or another."

- Iranian state television announced that Tehran will not commit to the truce extension announced by Trump.

- Advisor to the Speaker of the Iranian Parliament: "Trump's extension of the ceasefire is an attempt to gain time for a surprise strike."

U.S. Interest Rates

- Kevin Warsh, the nominee for a senior position on the Federal Reserve Board, stated on Tuesday that he has made no promises to Trump regarding interest rate cuts.

- According to the CME Group's FedWatch tool: the probability of keeping U.S. interest rates unchanged at the April meeting is currently stable at 99%, while the probability of a 25-basis-point hike stands at 1%.

- To re-price these probabilities, investors are closely following the release of more economic data from the United States.

Gold Performance Expectations

Edward Meir, an analyst at Marex, said: "With this ceasefire extension, markets see a decrease in the intensity of the crisis in the Middle East."

Meir added: "If the ceasefire ends and hostilities resume, we will see an increase in the value of the dollar and a rise in oil prices and interest rates, which will negatively affect gold prices."

SPDR Fund

Gold holdings at the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained virtually unchanged on Tuesday, with the total staying at 1,059.76 metric tons.