Khaberni - Bitcoin has escalated to its highest level in 12 weeks, approaching the $80,000 barrier, alongside improvements in market risk appetite following reports of a new Iranian proposal to the United States aiming to reopen the Strait of Hormuz and to ease the war on Iran.
The largest cryptocurrency rose up to 1.6% to record $79,488 during trading, which is the highest level since January 31, the last time the currency was traded above $80,000.
At the time of writing this line, Bitcoin was traded at $77,941, with a market value of $1.56 trillion, while Ether recorded $2,323.7 with an increase of 0.36%, and a market value of $280.35 billion, according to data from the "Coin Market Cap" platform.
Among the top 4 cryptocurrencies by market value:
- "Tether" recorded roughly one dollar with a market value of $189.78 billion.
- "XRP" was traded at $1.41 with a market value of $87.42 billion.
The total market value of cryptocurrencies reached $2.64 trillion, with a daily trading volume of $113.83 billion.
The rise came after a report by Axios website that suggested Iran had submitted to the United States a new proposal through Pakistani intermediaries to reopen the Strait of Hormuz and end the war, with a postponement of the nuclear negotiations to a later stage.
The Associated Press reported that the Iranian proposal includes ending restrictions on the strait in return for ending the American blockade on Iran, while Washington's stance remains cautious due to the disagreement over the nuclear file.
Cautious Rise
Cryptocurrencies benefitted from a relative decrease in investor fears following diplomatic developments, as Bitcoin typically moves with high-risk assets when market sentiments improve, and the rise coincided with a rise in Asian stocks and a retreat from some of the oil gains that came due to the strait's closure.
However, the $80,000 level still represents a significant psychological and technical barrier, as analysts believe that many new buyers approach this area as a break-even point, which may prompt some to sell and exit their positions.
According to Bloomberg, Bitcoin gradually returned toward the $80,000 level in recent sessions, supported by short covering and improved institutional demand.
Short covering means that traders who previously bet on the price falling are forced to buy the currency or close their contracts when the price moves against their expectations, adding new demand and supporting the rise.
Bitcoin has risen about 16% since the start of April, heading towards its first monthly gain of more than 10% since May 2025, according to Bloomberg.
Institutional Demand
The rise is also supported by improved inflows into Bitcoin exchange-traded funds (ETFs) in the United States, and according to Bloomberg, net inflows to these funds amounted to about $2.5 billion in April, putting them on a path that may double the total flows of March.
Bitcoin ETFs allow investors to be exposed to the currency price without buying or storing it directly, making them a key tool for institutional money entering the cryptocurrency market, as explained by Coin Market Cap regarding the nature of these funds.
Purchases by "Strategy" company, led by well-known Bitcoin proponent Michael Saylor, have supported sentiment; it purchased $3.9 billion worth of the most popular digital currency during April, the largest monthly purchasing volume for the company this year.
