Bitcoin surged above $80,000 for the first time since January during early Asian trading on May 4, 2026, reaching highs around $80,600. The cryptocurrency later pulled back to around $79,000 following reports of an Iranian missile strike on a U.S. warship, which the U.S. denied. Geopolitical risks near the Strait of Hormuz overshadowed strong ETF inflows supporting the rally.
Bitcoin rallied overnight on May 4, touching intraday highs of $80,594 to $80,619 before sliding to $79,074 in late Asian hours. The move marked the highest level since January 31, driven by aggressive buying on exchanges like Binance and positive sentiment from U.S. spot Bitcoin ETFs, which saw $629 million in net inflows on Friday, contributing to $3.29 billion over the past two months, according to SoSoValue data. Analysts at Marex noted that a clean break above $80,000 could turn it into a momentum trade, while rejection might invite profit-taking toward the mid-$70,000s. Strong ETF flows and firmer equities fueled the risk-on impulse, with institutional demand absorbing volatility, Ecoinometrics stated that demand is starting to stick after a nine-day inflow streak, the longest in the bear market. However, reports from Iran's Fars news agency claimed two missiles hit a U.S. patrol boat near Jask Island, sparking a 5% spike in Brent crude above $113 a barrel before the U.S. denial pared the move. President Donald Trump announced Project Freedom, with U.S. forces escorting stranded ships through the Strait of Hormuz starting Monday, prompting Iran to redefine its control zone. Ether traded at $2,341 up 1.2%, Solana at $84.08 up 0.2%, while the Fear & Greed index dropped to 43 amid Middle East tensions and hawkish Fed expectations. CryptoQuant analyst JA Maartunn warned Bitcoin must hold above $79,000 on close to confirm strength.
