Bitcoin Hits Highest Level in 12 Weeks.. Here Are the Reasons

SadaNews - The Bitcoin currency has risen to its highest level in 12 weeks, nearing the $80,000 barrier, as investor risk appetite improves in markets following reports of a new Iranian proposal to the United States aimed at reopening the Strait of Hormuz and easing the war on Iran.

The largest cryptocurrency surged by up to 1.6% to record $79,488 during trading, its highest level since January 31, the last time the currency was traded above $80,000.

At the time of writing, Bitcoin was trading at $77,941, with a market capitalization of $1.56 trillion, while Ether recorded $2,323.7, up 0.36%, with a market capitalization of $280.35 billion, according to data from "Coin Market Cap".

Among the top 4 cryptocurrencies by market capitalization:

"Tether" recorded nearly one dollar with a market capitalization of $189.78 billion.

"XRP" was trading at $1.41 with a market capitalization of $87.42 billion.

The total cryptocurrency market capitalization reached $2.64 trillion, with a daily trading volume of $113.83 billion.

The rise followed a report from Axios stating that Iran had presented to the United States, through Pakistani intermediaries, a new proposal to reopen the Strait of Hormuz and end the war, postponing nuclear negotiations to a later stage.

The Associated Press reported that the Iranian proposal includes ending restrictions on the strait in exchange for lifting the U.S. blockade on Iran, while Washington's stance remains cautious due to disputes over the nuclear file.

Cautious Rise

Cryptocurrencies benefited from a relative decline in investor fears following diplomatic developments, as Bitcoin usually moves with high-risk assets when sentiment improves in the markets, coinciding with an increase in Asian stocks and a decline in some of the oil gains that arose due to the closing of the strait.

However, the $80,000 level still represents an important psychological and technical barrier, as analysts believe that many new buyers approach this area close to breakeven, which may drive some of them to sell and exit their positions.

According to Bloomberg, Bitcoin has gradually returned towards the $80,000 level in recent sessions, supported by the covering of short positions and improved institutional demand.

Covering short positions means that traders who previously bet on a price drop are forced to buy the currency or close their contracts when the price moves against their expectations, thereby adding new demand and supporting the rise.

Bitcoin has risen by about 16% since the beginning of April, heading towards its first monthly gain of more than 10% since May 2025, according to Bloomberg.

Institutional Demand

The rise is also supported by improved inflows into Bitcoin exchange-traded funds in the United States. According to Bloomberg, net inflows into these funds reached about $2.5 billion in April, putting them on track to potentially double the total inflows of March.

Bitcoin exchange-traded funds allow investors to gain exposure to the price of the currency without buying or storing it directly, making them a key tool for institutional money entering the cryptocurrency market, according to Coin Market Cap's explanation of the nature of these funds.

Purchases by the company "Strategy", led by well-known Bitcoin supporter Michael Saylor, helped bolster sentiment, as it bought $3.9 billion worth of the leading cryptocurrency during April, marking its largest monthly purchase volume in a year.