Bitcoin climbed to $80,529 on Monday, reaching a four-month high and breaking through the $80,000 level that had acted as firm resistance. The move came shortly after U.S. President Donald Trump announced “Project Freedom,” a plan tied to cargo ships stranded by the closure of the Strait of Hormuz.
According to crypto.news data, BTC gained nearly 3% on the day and is now up more than 20% over the past month. The breakout quickly turned into a short squeeze. CoinGlass data showed more than $160 million in Bitcoin short liquidations, while total short liquidations across the broader crypto market exceeded $300 million.
Project Freedom centers on stranded shipping routes
Trump announced the initiative in a Truth Social post on Sunday, saying it would help free cargo ships that were trapped as bystanders in the U.S.-Iran conflict. Under the plan, the U.S. would guide foreign vessels through restricted waterways so they could resume commercial activity. The report said the initiative went into effect on Monday.
Trump also said his representatives were holding “very positive” discussions with Iran and that those talks could lead to a positive outcome. That message, combined with the shipping plan, appeared to ease market nerves for the moment.
Iranian officials, however, warned that any U.S. involvement in navigation through the strait could be seen as a violation of the fragile ceasefire and might draw a forceful response. The geopolitical risk has not disappeared. Markets are still watching for the next development.
ETF inflows extend as risk assets gain ground
Institutional flows added another layer of support. U.S. spot Bitcoin ETFs posted their fifth straight week of net inflows, with $153 million added last week. The continuation of those inflows has been closely watched as a sign that demand from larger investors remains intact.
Moves in traditional markets pointed in the same direction. West Texas Intermediate crude rose 0.6% to $102 per barrel, while Brent crude traded at $108 per barrel, up 0.4%. Gold and silver edged lower, and major Asian equity benchmarks including the Nikkei 225 and Hang Seng closed higher, suggesting a shift away from safe-haven trades during the session.
Next macro focus falls on May 7 jobless claims
The next scheduled data point in focus is the U.S. initial jobless claims report due on May 7. The release is expected to offer another read on labor market conditions and could influence expectations for Federal Reserve rate policy, making it a key event for Bitcoin and broader risk markets.