Bitcoin Reclaims $80,000 as Broader Crypto Market Rises Amid US-Iran Tensions

Bitcoin climbed back above $80,000, leading gains across the broader cryptocurrency market.

The Block reported that Bitcoin traded at about $80,150 on May 4, up roughly 2.6% from a day earlier. Ether rose 3.6% to $2,382 over the same period, while XRP gained 2% to $1.41.

The advance strengthened short-term momentum after Bitcoin broke through a technical resistance level. Nick Ruck, director at LVRG Research, said the move above a resistance range that had capped prices over the weekend reinforced the near-term uptrend.

Dominick John, an analyst at Zeus Research, said the rally sparked a short squeeze after Bitcoin cleared a key psychological resistance level.

The gains also coincided with hopes for easing tensions between the US and Iran. President Donald Trump announced on Truth Social a "Project Freedom" plan to move vessels stranded in the Strait of Hormuz. The measure is scheduled to begin on May 4, based on Middle East time. Trump also said the US was having very positive discussions with Iran, signaling progress in negotiations.

Still, tensions remain. Iran warned that US involvement could violate the ceasefire agreement.

Institutional inflows also appear to have supported Bitcoin's rise. Data from SoSoValue showed US spot Bitcoin exchange-traded funds recorded net inflows of $153.87 million last week, extending the streak of weekly inflows to five.

Markets are also watching US initial jobless claims due this week, along with developments in US-Iran negotiations, as key drivers of short-term price direction.