Crypto Soars To End The Week As Strait Of Hormuz Reopens

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Cryptocurrencies are ending the week on a high note as Bitcoin (CRYPTO: $BTC) rises 4% to trade at $78,000 U.S., its highest level in months.

Other cryptocurrencies are also marching higher on April 17, with Ethereum (CRYPTO: $ETH) also up 4% and trading above the key resistance level of $2,400 U.S.

Crypto prices are surging alongside equities on news that Iran has reopened the Strait of Hormuz waterway where 20% of the world’s crude oil is shipped.

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The Strait of Hormuz had been closed since the U.S. and Israel attacked Iran on Feb. 28, sending oil prices soaring and hurting risk assets such as crypto.

In recent weeks, Bitcoin has struggled to break above $76,000 U.S., a key level that analysts say is critical for BTC to eventually retake $100,000 U.S.

Bitcoin has now gained about 20% since the U.S. and Iran announced a two-week ceasefire, and there is hope for further gains with the largest cryptocurrency back above its 100-day moving average.

Here’s what else happened with cryptocurrencies over the past week:

Fed Chair Nominee Kevin Warsh Owns Crypto: Kevin Warsh, President Trump’s nominee to be the next chair of the U.S. Federal Reserve, owns cryptocurrencies. Financial disclosures that Warsh made with the U.S. Office of Government Ethics ahead of his upcoming confirmation hearing on Capitol Hill show he has crypto-specific holdings. Warsh holds equity positions in more than a dozen blockchain and digital assets.

Goldman Sachs To Launch Bitcoin Income ETF: Wall Street investment bank Goldman Sachs (NYSE: $GS) has filed to launch a Bitcoin exchange-traded fund (ETF), its first direct foray into crypto investing. If approved by regulators, Goldman Sachs’ Bitcoin Premium Income ETF will give investors exposure to Bitcoin while also generating income through a premium-based strategy.

Bitmine Reports $3.8 Billion Loss: Ethereum treasury company Bitmine Immersion Technologies (NYSE: $BMNR) reported a $3.8 billion U.S. loss. The company, led by investor Tom Lee, has struggled as the price of Ethereum remains volatile and is trading at half its level from last summer. Bitmine owns 4.87 million ETH at an average cost of $2,206 U.S. per token.

Charles Schwab Launches Crypto Trading: Financial services company Charles Schwab (NYSE: $SCHW) is launching a new crypto trading platform as it seeks to better compete against rivals such as Robinhood (NASDAQ: $HOOD). Clients of Charles Schwab can now buy and sell both Bitcoin and Ethereum through a new arm called “Schwab Crypto.” The move places Charles Schwab in direct competition with Robinhood and other crypto-focused firms.

Circle Hit With Class Action Lawsuit: Circle Internet Group (NYSE: $CRCL) has been hit with a class action lawsuit from a group of Drift Protocol investors who lost money in the recent $280 million U.S. hack. The lawsuit filed against Circle accuses the company of failing to act to freeze the USDC coins that were stolen in the hack. Circle CEO Jeremy Allaire has defended the company’s actions in the Drift exploit, saying that the company only freezes wallets at the direction of law enforcement or the courts.

Kraken Acquires Derivatives Exchange Bitnomial: The parent company of privately held crypto exchange Kraken has agreed to acquire digital asset derivatives platform Bitnomial for $550 million U.S. The acquisition of Bitnomial by Kraken parent company Payward bypasses years of regulatory buildout and allows it to expand its U.S. footprint at a faster clip. Kraken has been scaling its business ahead of a planned initial public offering (IPO).

Ethereum ETFs On Six-Day Win Streak: Ethereum exchange-traded funds have rebounded and are on a six-day winning streak. Data from SoSoValue shows that the 10 U.S. spot Ethereum ETFs recorded $18 million U.S. of net inflows on April 16. Over the previous six trading sessions, Ethereum ETFs drew in nearly $300 million U.S. of capital from investors.