On the morning of May 4, the price of the leading cryptocurrency rose to $80,500. A shift in the news landscape surrounding the conflict between the US and Iran was one of the growth drivers.
At the time of writing, Bitcoin is trading around $79,900, having appreciated by 2.3% over the past 24 hours.
The price of Ethereum increased by nearly 3%, XRP by 1.9%, and BNB and Solana by 2.7% and 1.8%, respectively.
The volume of liquidations in the crypto market reached $359.2 million over 24 hours, with more than $300 million attributed to short positions.
According to Nick Rak, director of LVRG Research, the rise above $80,000 signifies a break from the resistance zone that had constrained Bitcoin over the weekend.
“The swift breakthrough shifted the short-term momentum to a bullish stance and confirmed the strength of buyers after the previous pullback,” he noted.
Dominic John, an analyst at Zeus Research, added that the market experienced a technical short squeeze: participants who had opened short positions at a strong threshold began closing them as the price rose, which amplified the upward momentum.
Geopolitical Factor
Positive news regarding the Middle East situation also influenced market dynamics. US President Donald Trump announced the launch of the Project Freedom initiative.
The American side will ensure the passage of stranded merchant ships through the Strait of Hormuz.
Simultaneously, the US leader reported “positive negotiations” with Tehran but warned that any obstruction to “Project Freedom” would meet with “resolute resistance.”
Brent crude is trading around $107 per barrel, while WTI is at $101.
Institutional Demand
Another contributing factor is the American spot Bitcoin-ETFs. Inflows have continued for the fifth consecutive week.
By the end of April, these instruments attracted $1.97 billion—the highest figure since October 2025.
An analyst under the pseudonym Darkfost also pointed to increased activity among large players. Amid the rise of the leading cryptocurrency, the whale inflow ratio on Binance increased to 0.51.
🗞️ Whale Inflows activity resurface as Bitcoin pushes higher.
Since February 6, Bitcoin has posted a performance of around +32%, largely driven by derivatives market dynamics.
However, the macroeconomic environment has not materially improved in recent months.
The escalation… pic.twitter.com/NtzdWkMTWu— Darkfost (@Darkfost_Coc) May 4, 2026
Earlier, CryptoQuant experts acknowledged the April rise in Bitcoin as speculative. Over the month, the price of digital gold increased by nearly 12%.