On Monday, Bitcoin continued its gradual ascent towards the $80,000 level as investors assessed the latest developments in the standoff between the US and Iran concerning the Strait of Hormuz. The original cryptocurrency rose as much as 1.6% to reach $79,488, marking its highest point since January 31, when it was last above $80,000. At the time of writing, it was trading around $77,613. The second-largest digital asset, Ethereum, saw gains of up to 1.7%. Asian equities moved higher on Monday following reports that Iran had presented the US with a new proposal to reopen the Strait of Hormuz. The closure of this critical trade route during conflicts with the US and Israel has previously triggered volatility in crude oil and risk assets. Crude oil prices also relinquished their earlier gains on the day. Rachel Lucas, an analyst at BTC Markets, stated, "The risk is real. The probability of a US-Iran peace agreement has significantly decreased, and this macro-level pressure could trigger a broad reassessment of risk assets." She added, "$80,000 represents the breakeven point for many recent buyers; typically, selling pressure emerges at this level as they close their positions to exit." In recent trading sessions, Bitcoin has been steadily rebounding towards $80,000, driven by traders covering short positions and improved institutional demand. The token has gained 16% since the beginning of April and is on track to record its first double-digit monthly gain since May 2025. According to compiled corporate data, Strategy Inc. (MSTR.US), the Bitcoin accumulation entity led by Michael Saylor, has purchased $3.9 billion worth of the token so far this month, the highest single-month total in a year. Demand for US-listed spot Bitcoin ETFs has also notably recovered this month. Net inflows for April have reached approximately $2.5 billion, potentially doubling the total from March. Institutional buyers returned to these funds in March after four consecutive months of net outflows.
Comments