Bitcoin just hit a four-month high. On Monday, Bitcoin Price Surges to $80,529. Why the sudden jump? It follows an announcement from U.S. President Donald Trump. He revealed “Project Freedom” on Truth Social. The goal is to help cargo ships stranded near the Strait of Hormuz.
Bitcoin price surges to $80K after breaking key resistance
According to TradingView, Bitcoin rose nearly 3%. It broke past the $80,000 level, which had been a tough resistance point.
In fact, Bitcoin Price Surges over 20% in the past month alone.
So, what triggered today’s move? Trump’s post on Sunday. He announced a plan to free stranded cargo ships caught in the U.S.-Iran conflict.
Under this initiative, the U.S. would guide foreign vessels safely through restricted waters. This allows them to continue their business freely. The project reportedly went into effect today.
However, not everyone is happy. Iranian officials have warned that any U.S. interference in the strait would violate the fragile ceasefire. They added that it could lead to a forceful response.
Positive talks with Iran also helped market sentiment
Beyond Project Freedom, Trump shared more good news. He said his representatives are holding “very positive” discussions with Iran.
“These discussions could lead to something very positive for all,” Trump wrote in his May 3 Truth Social post. This helped ease tensions in the Middle East.
The rally triggered a massive short squeeze
As Bitcoin price surges to $80K, short traders got caught off guard. This triggered a short squeeze.
Data from CoinGlass shows over $160 million in Bitcoin short liquidations.
Oil prices hold steady while safe-haven assets dip
Meanwhile, oil prices remained stable. West Texas Intermediate rose 0.6% to 102 per barrel .Brent Crude traded at 108, up 0.4%.
On the other hand, safe-haven assets like gold and silver fell slightly. Asian tech stocks performed well. The Nikkei 225 and Hang Seng closed higher as investor confidence returned.
Institutional money keeps flowing into Bitcoin
Spot Bitcoin ETFs in the U.S. just entered their fifth straight week of net inflows. Last week alone, they added $153 million.
These institutional inflows often improve how retail investors see Bitcoin. As a result, they drive more upward momentum.
What to watch next
Looking ahead, one major catalyst is the May 7 jobless claims report. It will provide insight into the labor market’s strength.
This data could also influence expectations around the Federal Reserve’s interest rate policy. So keep an eye on it.