Bitcoin rose above $80,000 for the first time in three months, as a new U.S. military initiative to de-escalate tensions in the Middle East fueled a broad rally in risk assets.
The original cryptocurrency climbed as much as 1.9 percent to $80,393 on Monday morning in Singapore, its highest point since January 31, according to CoinGecko data. The move came after U.S. President Trump on May 3 unveiled “Project Freedom,” a military operation to ensure secure passage for commercial vessels through the Strait of Hormuz that commenced May 4.
“The de-escalation of geopolitical tensions in a critical shipping lane like the Strait of Hormuz can lead to a 'risk-on' sentiment in global markets,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. This reduces uncertainty and perceived risk, often benefiting assets like Bitcoin as capital flows away from safe havens.
The surge saw Bitcoin’s market capitalization climb to $1.60 trillion, with 24-hour trading volume hitting $15.27 billion. The rally was not isolated to Bitcoin, as other digital assets including Ether (ETH) also advanced. The broader positive sentiment was reflected in traditional markets, with Asian stocks gaining and the Indian stock market trading higher. The move suggests investors are rotating capital into growth and speculative assets on the back of reduced geopolitical friction.
This article is for informational purposes only and does not constitute investment advice.
