Bitcoin’s price climbed back over $80,000, a level it hadn’t reached since late January. This increase was driven by easing geopolitical tensions, consistent demand for Bitcoin ETFs, and some traders being forced to cover their losing bets in the crypto market.
Bitcoin was trading around $80,000 after briefly hitting a high of $80,529 – its highest price since January 31st. This move is significant because $80,000 had become a key price level for the market, following weeks of recovery from earlier losses this year.
Why Is The Bitcoin Price Up Today?
The situation seemed to escalate after a post by US President Donald Trump on Sunday. He announced “Project Freedom,” claiming it would assist ships stuck due to the closure of the Strait of Hormuz. Trump described this as a humanitarian effort to help neutral countries impacted by the conflict between the US, Israel, and Iran, stating the US would ensure these ships could safely navigate the blocked waterways and continue trading.
News of the plan arrived at a time when tensions were already high regarding the situation in the Strait of Hormuz. The exercise, set to start on Monday, will include guided-missile destroyers, over 100 planes, and 15,000 military personnel. Iran criticized the plan, saying it might break any existing agreements. President Trump described the crews of the stranded ships as being in a difficult situation, and warned that any disruption would be met with strong action.
Crypto traders weren’t focused on whether the threat in the Hormuz Strait had completely gone away – it hadn’t. What mattered was the US announcement provided a clear way for the situation to calm down. For weeks, blocked shipping, rising energy prices, and uncertainty surrounding Iran had made investors generally more cautious. Iran had essentially closed off the strait, disrupting global shipping and leaving ships and crews stuck in the Persian Gulf since the conflict began.
As prices moved, we saw significant activity in the derivatives market really accelerate the trend. According to CoinGlass data, over the last 24 hours, a total of $356.55 million in crypto positions were liquidated. Interestingly, the vast majority – $303.88 million – were short positions being closed, compared to just $52.66 million in long liquidations. Bitcoin accounted for the biggest share of these liquidations at $170.69 million, with Ethereum following at $91.60 million. This pattern strongly suggests a moderate short squeeze occurred; essentially, traders who had bet against the market were forced to buy back in as prices rose, creating additional buying pressure right around the time Bitcoin broke through $80,000.
Besides the recent surge in price, US spot bitcoin ETFs continued to attract investment, bringing in $153.87 million last week – marking five weeks of consistent inflows, according to SoSoValue. This ongoing investment suggests the price increase isn’t just based on news, but also shows continued interest from institutional investors following weeks of market recovery.
At press time, BTC traded at $79,865.
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2026-05-04 10:17