Bitcoin crossed the $80,000 threshold to hit $80,596, driving a broader cryptocurrency market rally that pushed total market capitalization up by roughly 2%. The upward momentum is supported by institutional demand, spot Bitcoin exchange-traded fund inflows, and shifting regulatory sentiment in Washington.
Institutional Inflows and Market Sentiment
Spot Bitcoin ETFs recorded approximately $630 million in inflows on the last trading day, signaling renewed confidence among institutional investors. Trading volume for Bitcoin surged 114% during the rally. The Crypto Fear & Greed Index climbed into neutral territory, pulling away from earlier bearish sentiment as market participants reacted to improving policy odds.
According to research from 10x Research, Bitcoin triggered the first of its bull market signals, with the medium-term technical picture improving faster than most realize. Two consecutive months of positive returns, rising ETF inflows, and funding rates underpin the shift. However, 10x Research noted that Bitcoin options are flashing a slight warning, while Ethereum options reflect a more cautious market stance.
Regulatory Shifts and Geopolitical Relief
Legislative momentum surrounding the long-awaited CLARITY Act accelerated after White House crypto adviser Patrick Witt signaled potential advances, with lawmakers targeting a markup in May following a stablecoin yield compromise.
Simultaneously, easing geopolitical tensions contributed to the market surge. According to a Reuters report, President Trump stated that the United States will help stranded ships leave the Strait of Hormuz. The reduction in geopolitical friction helped curb selling pressure and triggered short squeezes across multiple assets. CoinGlass data indicates that the crypto market recorded over $302 million in short liquidations today, affecting nearly 110K traders with total liquidations reaching $370 million in 24 hours.
Altcoin Performance Across the Sector
Major altcoins mirrored Bitcoin’s trajectory, posting notable gains alongside heavy short liquidations:
- Dogecoin: Rose more than 4% to extend its weekly rally beyond 15%, aided by broader sector strength and X cashtags for Dogecoin, XRP and other crypto assets.
- XRP: Reclaimed $1.41, driven by positive ETF flows, hopes for the CLARITY Act markup, and significant whale accumulation supported by supply shocks on Binance.
- Zcash (ZEC): Recorded sharp gains following endorsements from Grayscale’s Barry Silbert and a $400 prediction from Arthur Hayes.
- Terra Luna Classic (LUNC): Surged more than 7% to trade at $0.0000924, pushing its weekly gains past 60% amid Binance token burns and the rollout of software upgrade v4.0.1.
Expert Outlook and Technical Indicators
Market analysts offer varied perspectives on the sustainability of the current price levels. Blockstream CEO Adam Back pointed out via social media that Bitcoin’s 200-week moving average has surpassed $60K, noting that weekly charts continue to hold above the 10-year ascending trendline that historically suggested the bottom.
Grayscale Research previously indicated that Bitcoin bottomed in the $65,000 to $70,000 range. CryptoQuant research head Julio Moreno reported that the Bitcoin Bull Index turned neutral for the first time in six months. Conversely, a divided Federal Reserve, overbought equity markets, and US-Iran peace talks risks remain key macroeconomic risks that could challenge the prevailing bullish thesis.
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