Bitcoin surges above US$80,000 for the first time since January as tech earnings show strength and institutional demand picks up with growing optimism about US crypto legislation. Asian shares are also nearing record highs set just before the Iran war started.
Key Highlights
- Bitcoin climbed 1.9% to US$80,393 in Singapore trade Monday morning, its highest since January 31.
- The rally coincides with MSCI’s Asian equities gauge near its February record high, which coincided with the US-Israel assault on Iran.
- Trader sentiment has increased significantly due to optimism around a potential US stablecoin deal and Senate crypto legislation.
- Bitcoin peaked over US$126,000 in October last year and then tumbled to about US$60,000 by February, since then it has been gradually rebounding.
Bitcoin Exceeds US$80,000 for the First Time in a Tri-Crypto Pair
Bitcoin surged for more than three months above US$80,000 on Monday morning in Singapore, rising to 1.9% to US$80,393. The move was accompanied by increases in other tokens including Ether. The rally coincided with MSCI’s Asian equities gauge nearing its record, last traded on Feb. 28, the day after the US and its ally Israel began bombing Iran. Broader markets held afloat by stronger-than-expected earnings from large-cap technology names last week spurring crypto traders higher.
What is Driving the Move
Multiple factors converged to drive Bitcoin over the US$80,000 line. Bitcoin exchange-traded funds in the US saw $630 million of net inflows on Friday, a definitive sign that institutional cash is returning to the asset class after months sitting on the sidelines. Growing confidence that a key stablecoin yield provision may be negotiated has also lifted sentiment around US crypto legislation, hinted at by Richard Galvin (executive chairman at crypto investment firm DACM).
“It’s early days,” said Galvin, “but US$80,000 has been a major psychological level.” At the geopolitical level, markets are parsing conflicting opinions. Trump said US vessels would now guide ships that are not involved in the fighting via the Strait of Hormuz but a senior Iranian figure warned all movements by any US vessels through the Strait were a breach of the ceasefire rule.
What Analysts Are Saying, And Where Bitcoin Can Head Next
Caroline Mauron, co-founder at Orbit Markets, commented that a clear break above US$80k should give ‘the asset class further positive momentum”, an indication that this move isn’t just a number but also a return of confidence in the market. BTC is still a long way away from its all-time high of greater than US$126,000 in October last year, when it spent months falling into the low US$60,000s range in February.
After that, the recovery was slow and stable with some institutional inflows and more favourable sentiment regarding regulation. The way that the situation in Iran plays out will carry much of this rally up or down, an escalation in the Strait of Hormuz could swiftly unwind the risk-on vibes pushing crypto and equities higher right now.
FAQs
- How far did Bitcoin go yesterday?
US$80,393, up 1.9 per cent, the highest since January 31
- Why is Bitcoin rising?
An all-time high is supported by strong earnings from tech, US$630 million in ETF inflows on Bitcoin on Friday and crafty sentiment regarding US crypto legislation news.
- What is this stablecoin deal about?
A possible US deal allowing big Senate crypto legislation to pass, this is seen as positive for the market overall.
- Is the Iran war going to turn Bitcoin back down?
Yes, anything that happens in the Strait of Hormuz could turn around this positive mood in both crypto and equity instantly.
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