Bitcoin Tops $80,000 on Short Squeeze, ETF Inflows

Bitcoin climbed above $80,000 late Sunday, leading gains across major cryptocurrencies as traders reacted to technical buying, continued ETF inflows and geopolitical developments. The cryptocurrency was at $80,150, up 2.6% over the prior 24 hours as of 11:40 p.m. ET. Ether rose 3.6% to $2,382 and XRP gained 2% to $1.41.

The price move followed a break of weekend resistance that pushed short positions into liquidation and prompted additional buying. Nick Ruck, director of LVRG Research, noted: “Bitcoin's surge past $80,000 breaks through a resistance zone that limited price action over the weekend. The quick shift places near-term momentum firmly as bullish and confirms buyer strength after the earlier pullback.” Dominick John, an analyst at Zeus Research, added: “Markets are seeing a technical short squeeze as price breaks through a major psychological resistance zone.”

U.S. spot-Bitcoin exchange-traded funds reported a fifth consecutive week of net inflows, taking in $153.87 million last week, according to SoSoValue data. Ruck noted that the sustained inflows reflect growing institutional interest in bitcoin as a portfolio asset.

Geopolitical developments also coincided with the market moves. A U.S. political figure posted plans for an initiative called “Project Freedom” to guide stranded commercial ships out of the Strait of Hormuz beginning Monday morning. An Iranian official warned that any interference in the strait would be viewed as a violation of a ceasefire. The same U.S. political figure said representatives were holding “very positive discussions” with Iran that could lead to a constructive outcome.

Energy markets were modestly mixed alongside the tensions, with Brent crude around $108.49 per barrel and U.S. crude near $101.84. Traders noted that shifts in oil prices and regional diplomacy can influence risk appetite in crypto markets.

Looking ahead, market participants said they would watch U.S. economic data due this week, including May 7 initial jobless claims, and any updates on U.S.-Iran talks. Continued ETF inflows will be tracked as a gauge of institutional demand for bitcoin.