Bitcoin has climbed past $80,000, triggering a wave of short liquidations as geopolitical developments and institutional demand continue to support the rally. According to data from Coingecko, BTC rose nearly 3% to reach $80,529 on Monday, pushing through a level that had capped price action for weeks while extending its monthly gains beyond 20%. Momentum picked up after Donald Trump outlined “Project Freedom” on May 3 via Truth Social, describing a US-led effort to guide stranded cargo ships through the Strait of Hormuz following disruptions tied to the US-Iran conflict. US officials framed the plan as a measure to assist foreign vessels, although Iranian authorities warned that any such intervention could violate the ceasefire and prompt a response. As prices moved higher, liquidation data from CoinGlass showed more than $160 million in Bitcoin short positions were wiped out, contributing to over $300 million in liquidations across the wider crypto market. Separate figures cited by market data indicate total short liquidations reached $452 million over a 24-hour period, pointing to aggressive positioning being forced out as price cleared resistance. Supply squeeze and institutional demand In the meantime, institutional activity has continued to tighten available supply. Commenting on the matter, Capriole Investments founder Charles Edwards said institutions are absorbing more than 500% of Bitcoin’s daily mined supply, with around 450 BTC produced per day following the April 2024 halving. Edwards noted that demand growth has outpaced supply expansion, citing a rate of change near 0.0139% for institutional buying compared to roughly 0.0022% for new issuance. He added that similar conditions in the past have led to average gains of about 24% over the following month, which would place Bitcoin near $96,000 by June if the pattern holds. Data tied to ETF inflows and corporate accumulation supports that trend, with roughly 70,000 BTC acquired in April compared to about 13,500 BTC mined in the same period. Spot Bitcoin ETFs in the US have recorded a fifth consecutive week of net inflows, with $153 million added last week, reinforcing demand from institutional channels. Further, on-chain data from Glassnode shows accumulation extending beyond large buyers, with wallets holding between 100 and 1,000 BTC adding over 61,000 BTC in the past 30 days. Smaller cohorts, including holders of 1 to 100 BTC, have also increased their balances during that period. Breakout levels draw trader focus According to well-followed crypto analyst Michaël van de Poppe, a move above $79,000 “opens the opportunities” for Bitcoin to target the $86,000 to $88,000 range, with a possible extension toward $90,000. Meanwhile, analyst Matthew Hyland called the latest price action a “disbelief rally,” adding that traders expecting a drop toward $60,000 may turn bullish closer to $90,000. Data from CryptoQuant added further context, with analyst Amr Taha noting two hourly buy volume spikes on Binance of roughly $1.19 billion and $792 million. “When this type of volume appears near a major breakout level, it often shows that traders are not waiting for a pullback; instead, they are chasing confirmation as the price moves higher,” Taha wrote. At the time of writing, Bitcoin was trading at $80,328, up 2% on the day. The post Bitcoin jumps past $80K as Hormuz tensions catch traders off guard appeared first on Invezz
