Bitcoin Plunges Below $70,000

Bitcoin climbed above $80,000 in early May, reaching its highest level since February, as it tracked gains in other risk assets. Sentiment was also lifted by optimism that the US could reach an agreement on a key stablecoin yield provision, potentially paving the way for broader crypto legislation to advance in the Senate. Meanwhile, markets assessed comments from President Trump that the US would begin guiding neutral vessels through the Strait of Hormuz to help them navigate the conflict zone with Iran. However, a senior Iranian official warned that any US involvement in the waterway would be viewed as a violation of the ceasefire. The strategic passage remains a key flashpoint, with shipping disruptions inserting volatility to broader risk assets. Despite this turbulence, Bitcoin has remained resilient, rising about 12% in April. Institutional demand also improved, with US Bitcoin exchange-traded funds recording $630 million in net inflows last week.

Bitcoin climbed above $79,000 in late April, reaching its highest level since early February, before giving up some gains as markets reassessed developments in US-Iran tensions. A report from Axios indicates that Iran has put forward a new proposal to Washington aimed at easing tensions and restoring access to the Strait of Hormuz. The strategic waterway has been a key flashpoint during the conflict, with disruptions in shipping contributing to volatility across broader risk assets. Despite the volatility, Bitcoin has shown resilience, remaining up over 16% so far this month and on track for its first monthly double-digit gain since May 2025. This was partly supported by a sharp rebound in US-listed spot Bitcoin ETF inflows, which reached about $2.5 billion in April, putting the month on pace to more than double March’s total. This follows four consecutive months of net outflows before institutional demand returned in March.

Bitcoin climbed more than 2% above $78,000 in late April, hitting its highest level since early February, amid cautious optimism after President Trump said he would extend the ceasefire with Iran. Trump said the truce would continue until Iran submits a “unified proposal” to end the war with the US and Israel. This came after reports that Vice President JD Vance’s Pakistan trip for Iran talks was postponed, while Tehran, via a Pakistani intermediary, told US counterparts it would not join further talks. Since the conflict began, Bitcoin has weathered volatility along with other risk assets but still remains up more than 15% since late February. Meanwhile, inflows into US-listed spot Bitcoin ETFs have strengthened in recent weeks, with the 13 funds attracting over $250 million so far this week, following $996.4 million in net inflows last week, pointing to rising institutional demand.