Bitcoin surged past the $82,000 mark as oil prices plummeted due to a sudden de-escalation in U.S.-Iran tensions. According to CryptoSlate data, BTC saw a week-long rise of over 7%, following President Donald Trump’s decision to pause a military operation in the Strait of Hormuz. This move prompted the liquidation of more than $200 million from short traders within 24 hours, as reported by CoinGlass.
The easing of tensions reduced fears over disruptions in one of the world’s crucial energy corridors, leading to Brent crude oil prices dropping by 10% to $97 per barrel and WTI sliding 9.82% to $88 per barrel. Trump’s pause on ‘Project Freedom’ aimed at reopening the Strait of Hormuz to commercial shipping allowed for potential U.S.-Iran negotiations.
This development softened Tehran’s stance, with Iran’s Revolutionary Guards Navy asserting secure transit through the Strait. Markets responded to these events with a notable drop in crude oil prices as traders removed the geopolitical risk premium.
In contrast, Bitcoin and other risk assets benefited from the reduced macroeconomic concerns regarding energy shocks impacting inflation and Federal Reserve policy.
Bitcoin’s ascent above $82,000 brought it near a crucial supply zone ranging from $80,000 to $85,000. This area is seen as pivotal for establishing longer-term market trends, with institutional demand playing a significant role in the current rally.
U.S.-listed Bitcoin ETFs have garnered over $1.6 billion in net inflows since May 1, contributing to cumulative inflows nearing $60 billion and assets under management at approximately $109 billion. Corporate treasuries, particularly led by Strategy, are increasingly influential, absorbing around 1,834 Bitcoin daily.
Institutional investments accounted for nearly all positive capital flows into Bitcoin last month, as noted by Bitwise Europe’s research head. Retail demand is also showing signs of recovery, albeit secondary in impact.
The derivatives market further supports the bullish sentiment, with call options on Deribit targeting prices above $82,000 and significant interest at $85,000 and $90,000 levels. This leverage buildup has analysts cautious about potential sharp corrections due to speculative capital inflows.
Analysts anticipate a key resistance point around the $93,000 level due to an unresolved gap in CME futures trading. However, concerns remain if spot buying lags behind leveraged positions, potentially leading to a market reset before reaching this target.
This article initially appeared on CryptoSlate.