Bitcoin, Ethereum rally amid Hormuz deal talks and geopolitical easing
Bitcoin and Ethereum both opened higher on August 5, 2026, with bitcoin at $64,052 opening up to $64,486, and Ethereum at $1,868 moving to $1,880. Market sentiment was bolstered by President Trump's comments suggesting a potential deal to reopen the Strait of Hormuz, which eased geopolitical tensions that had previously weighed on crypto prices.
Wednesday's early trading saw bitcoin climb from its opening level to roughly $64,487, while ethereum advanced to near $1,881. The upward momentum follows presidential remarks hinting at a swift resolution to the Strait of Hormuz dispute, alongside anticipation for the upcoming July employment data.
Despite the daily gains, both assets remain significantly below their peaks from late 2025, with bitcoin down over 44% year-over-year and ethereum nearly 50% lower. Their all-time highs stand at roughly $126,198 and $4,954 respectively, illustrating the steep correction these markets have endured over the past year.
A sustained easing of geopolitical tensions could restore investor confidence in risk assets, potentially drawing retail and institutional capital back into cryptocurrencies. However, the upcoming jobs report may shift monetary policy expectations, creating volatility. If prices stabilize, long-term holders might see recovery, while recent buyers could face further losses. Additionally, the tax treatment of crypto trades means any realized gains or losses will directly impact individual investors' financial planning, emphasizing the need for strategic timing.