Bitcoin moved back above the $80,000 mark late Sunday, leading a broader rebound across major digital assets as investors weighed fresh geopolitical developments involving the United States and Iran.
Bitcoin rose 2.6% over the Sunday to trade around $80,500. The advance helped lift sentiment across the wider crypto market. Ethereum gained 3.6% to $2,382, while XRP added roughly 2% to trade near $1.41.
The move comes after several sessions of cautious trading, with market participants closely monitoring political developments in the Middle East and their potential impact on global risk appetite.
The rally also triggered a sharp wave of forced liquidations across derivatives markets. More than $116 million was wiped out from the crypto market within one hour as Bitcoin surpassed the $80,000 mark. Short sellers absorbed nearly all of the damage, with roughly $114 million in bearish positions liquidated.
The sudden flush suggests many traders had positioned themselves for further downside. Instead, Bitcoin’s rebound forced rapid short covering, which added momentum to the late-session move.
Trump Announces “Project Freedom”
Late Sunday, Donald Trump said the United States would begin an initiative called “Project Freedom,” aimed at helping stranded commercial vessels move through the Strait of Hormuz. In a post on Truth Social, Trump said the effort would guide ships that had been delayed by the closure of the critical maritime route, allowing them to resume normal trade activity.
“For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business,” he wrote. According to Trump, the operation is expected to begin Monday morning, May 4.
The Strait of Hormuz remains one of the world’s most important shipping corridors, carrying a significant share of global energy exports. Any disruption to traffic through the passage typically draws immediate attention from global financial markets.
Iran Pushes Back
The announcement was met with a sharp response from Iranian officials. Ebrahim Azizi, a senior Iranian lawmaker and head of the Iranian parliament’s National Security Commission, warned in a post that any U.S. involvement in what he described as the new maritime regime of the Strait of Hormuz would amount to a violation of the ceasefire.
“The Strait of Hormuz and the Persian Gulf would not be managed by Trump’s delusional posts,” Azizi said.
Moreover, Trump said U.S. representatives were holding “very positive discussions” with Iran and suggested the talks could “lead to something very positive for all.”
While the latest price move remains modest compared with past rallies, it reflects how closely digital asset markets are responding to macro developments beyond crypto itself. In the meantime, investors will be watching whether the diplomatic discussions continue to progress and whether the planned U.S. maritime action in the Strait of Hormuz alters broader market sentiment in the days ahead.
At the time of writing, Bitcoin is changing hands at $79,010 with 0.7% gain in the past 24 hours.
