HYPE, ADA Outperform Bitcoin, Ethereum and XRP As Strait Of Hormuz Tensions Keep Crypto Markets On The Edge

Bitcoin may be nearing a pivot, with on-chain data indicating a redistribution of supply, not capitulation, Bitfinex said.

• ADA and HYPE outperformed major cryptocurrencies, rising over 4% and 3%, respectively, as Bitcoin, Ethereum and XRP lagged.
• Geopolitical uncertainty stayed elevated as the U.S. and Iran sent mixed signals and the Strait of Hormuz posed new risks to shipping.
• Institutional flows pointed to an Ethereum rotation, with Intesa Sanpaolo said to have trimmed IBIT exposure while adding to BlackRock’s Ethereum ETF.

Cardano (ADA) and Hyperliquid (HYPE) outperformed major cryptocurrencies on Tuesday, despite uncertainty over U.S.-Iran talks and fresh shipping risks in the Strait of Hormuz weighing on investor sentiment.

ADA price is up more than 4%, and HYPE price was up over 3% in the last 24 hours. In comparison, Bitcoin (BTC) traded 1% higher, Ethereum (ETH) gained 0.3% on the day, and XRP was 0.2% higher in the same time frame.

On Stocktwits, retail sentiment around ADA improved to ‘extremely bullish’ from the ‘bullish’ zone, with chatter staying at ‘high’ levels. In comparison, retail sentiment around HYPE remained in the ‘bullish’ zone, while chatter stayed at ‘high’ levels over the past day.

The split came as geopolitical uncertainty rose after contradictory statements from Washington and Tehran over whether they were in talks to end their nearly six-month conflict. 

Geopolitical Risks Remain In Focus

U.S. President Donald Trump said on Monday that talks were underway with Iran, calling them Tehran’s “last chance” to reach a deal, and later said on Truth Social that more meetings were planned in the “immediate future.”

Iran quickly rejected those claims.  There have been no talks with the United States, and no meetings have been scheduled, Foreign Ministry spokesman Esmail Baghaei said, according to a Reuters report. Iran will not “stand idly by” as the U.S. continues its naval blockade, Iranian military adviser Mohsen Rezaei warned on Monday. Further, Rezaei accused Washington of violating the June memorandum, saying, “If the United States brings warships into the illegal route in the Strait of Hormuz, we will target them." Rezaei also insisted Iran "will under no circumstances allow any route through the Strait of Hormuz other than Iran's route."

The Strait of Hormuz, a core global energy shipping lane, has seen another attack on commercial shipping. Conflicting information has emerged from all parties, with no real ceasefire in the picture so far. Reuters also cited a senior Iranian source, reporting that Iran and Oman are negotiating a temporary navigation plan where Iran would manage the entry of ships into the Strait, while Oman would assist with their exit.

The conflict started in late February, when the U.S. and Israel launched Operation Epic Fury against Iran. Bitcoin’s price has been down, dropping roughly 30% despite several short-lived relief rallies.

 One Stocktwits user said Bitcoin was following oil’s price movement. 

Analysts Say Institutions May Be Shifting Towards Ethereum

Bitfinex analysts said on Tuesday that 54.6% of the circulating supply of Bitcoin remains in profit, leaving the average holder near break-even. "This price action points to a pivot, with supply rotating across cohorts," Bitfinex said, suggesting the market may be going through a redistribution phase instead of entering a prolonged sell-off.

Further, Italian banking giant Intesa Sanpaolo had offloaded $22 million worth of BlackRock’s iShares Bitcoin Trust (IBIT) while taking an interest in the iShares Ethereum Trust (ETHA/ETHB) to the tune of $5.6 million. “Banks are selling Bitcoin and buying Ethereum,” Ash Crypto wrote, citing a potential shift. 

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