Bitcoin price surged to a four-month high of $80,529 on Monday shortly after United States President Donald Trump revealed “Project Freedom” to help stranded cargo ships affected by the closure of the Strait of Hormuz.
According to data from crypto.news, Bitcoin (BTC) price rose nearly 3% breaking past the $80,000 a level that had been serving as stiff resistance. The bellwether has rallied over 20% in the past month.
Bitcoin price jumped today after Trump announced Project Freedom via a Truth Social post on Sunday, an initiative to free stranded cargo ships that were trapped as innocent bystanders in the U.S.-Iran conflict. Notably, the U.S. would guide foreign vessels safely through the restricted waterways so that they could freely get on with their business. The initiative reportedly went into effect today.
Despite the humanitarian framing by the U.S., Iranian officials have warned that any U.S. interference to navigate in the strait would be considered a violation of the fragile ceasefire and could lead to a forceful response.
Besides the project, Trump also said that his representatives were engaged in “very positive” discussions with Iran that could help ease tensions in the Middle East.
“I am fully aware that my Representatives are having very positive discussions with the Country of Iran, and that these discussions could lead to something very positive for all,” said Trump in his May 3 Truth Social post.
As Bitcoin price rallied on the news, it triggered a short squeeze as short traders were caught offguard. Data from CoinGlass shows that over $160 million in Bitcoin short liquidations occurred, which caused over $300 million in short liquidations across the crypto market.
West Texas Intermediate was up 0.6% at $102 per barrel while Brent Crude oil traded at $108, up 0.4%, showing stability as markets await the mission’s outcome.
Safe-haven assets like gold and silver fell slightly lower on the day, while major Asian tech stocks such as the Nikkei 225 and Hang Seng closed higher as investor confidence returned.
Meanwhile, spot Bitcoin exchange-traded funds in the U.S. entered their fifth straight week of net inflows with $153 million added last week. Such institutional inflows often improve retail investors’ perception of the asset’s legitimacy and hence drive further upward momentum.
Looking ahead, one of the next major catalysts for Bitcoin and broader markets is the May 7 initial jobless claims report, which will provide insight into the strength of the labor market and could influence expectations around the Federal Reserve’s interest rate policy.
