Bitcoin breached $80,000 for the first time since delayed January as investors reacted to a combination of geopolitical relief, steady demand for ETFs and moderate low squeeze in crypto derivatives markets.
BTC quotes reached near $80,000 after reaching a daily high of $80,529, reaching the highest level since January 31. The breakout matters because $80,000 has reached the market’s closest psychological ceiling after weeks of recovery from deeper stress in the first quarter.
Why did the price of Bitcoin escalate today?
The main catalyst seemed to come from Washington. In the community of truth post on Sunday, US President Donald Trump announced “Project Freedom” – an operation he said would support ships stranded by the closure of the Strait of Hormuz. Trump described the move as a “humanitarian gesture” to neutral countries affected by the U.S.-Israeli war on Iran, saying the United States would “safely guide its ships” through restricted waterways so they can resume operations.
The news reached a market already sensitive to any changes in the dispute with Hormuz. The initiative is scheduled to begin on Monday and could involve guided missile destroyers, more than 100 planes and 15,000 troops, while Iran has condemned the plan as a possible violation of the ceasefire. “They are victims of circumstance,” Trump wrote of the stranded crews. He added that any interference “will have to be resolved by force.”
For cryptocurrency traders, the crucial point was not that the Hormuz risk disappeared. That didn’t happen. The point was that the U.S. statement gave markets a concrete de-escalation path after weeks in which shipping blockages, higher energy risks and uncertainty around Iran weighed on broader risk appetite. Iran’s effective closure of the strait has rocked global markets, with ships and sailors stranded in the Persian Gulf since the war began.
Derivative positioning then reinforced this move. CoinGlass data shows a total of $356.55 million in cryptocurrency liquidations in 24 hours, including $303.88 million in low liquidations compared to $52.66 million in long trades. Bitcoin accounted for the largest liquidation block on the heat map with $170.69 million, followed by Ethereum with $91.60 million. This is consistent with a moderate low squeeze: bearish positions were forced to buy back in a rising market, increasing mechanical demand as BTC cleared the $80,000 area.
Oppression was not the only support. Bitcoin spot funds in the U.S. recorded their fifth straight week of inflows last week, totaling $153.87 million, according to SoSoValue data. This flow profile strengthened the argument that the move was not just a headline-driven surge, but also reflected continued institutional allocation after weeks of economic recovery.
At the time of publication, the price of BTC was $79,865.
Featured image created with DALL.E, chart from TradingView.com
