Bitcoin breaks $80,000…Why?

▲ Strait of Hormuz, Bitcoin/ChatGPT generated image ©

Tensions between the US and Iran surrounding the Strait of Hormuz have pushed Bitcoin back above $80,000, making geopolitical risk a key variable in the cryptocurrency market.

According to cryptocurrency market data aggregator CoinMarketCap on May 4 (local time), Bitcoin (BTC) rose 2.27% over 24 hours to record $80,04.80. While the overall market showed an upward trend, Bitcoin displayed even stronger gains.

The direct background for this surge is the escalating tension in the Strait of Hormuz. News that US President Donald Trump ordered a US Navy blockade of the Strait of Hormuz amplified Middle East risks, leading some investors to perceive Bitcoin as a digital hedge against macro uncertainty, thus driving buying interest.

Technically, breaking the $80,000 mark fueled the upward momentum. 24-hour trading volume surged by 102% to $32.39 billion, and during this process, $157.79 million in Bitcoin short positions were liquidated. This indicates a simultaneous breakthrough of a psychological resistance level accompanied by strong trading volume and a short squeeze (buying pressure generated to close or cover short positions).

The short-term trend depends on whether the $78,000 support level is defended. If this level holds, the next target is presented as the 127.2% Fibonacci extension at $82,990. Conversely, if Bitcoin falls below $78,000, a retracement to around $76,449 could occur.

Ultimately, this rally is largely driven by external geopolitical events rather than internal supply and demand within the cryptocurrency market. Whether Bitcoin can stabilize above $80,000 depends on the easing of tensions related to the Strait of Hormuz and the sustainability of trading volume.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*