Bitcoin tops $81,700 as $80,500 support holds

Bitcoin rose to an intraday high of $81,714 on May 5 and held support above $80,500 after U.S. officials moved to de-escalate skirmishes in the Strait of Hormuz. The price increase pushed Bitcoin’s market capitalization to about $1.63 trillion and raised the total crypto market value to roughly $2.77 trillion.

The rally began early May 5 following reports of a limited clash between U.S. forces and Iran’s Islamic Revolutionary Guard Corps. U.S. officials described the situation as contained, and President Donald Trump characterized the ceasefire as “fully operational.”

Trading was volatile. Bitcoin briefly retreated after first breaking $81,000, then recovered to reach $81,714 by midmorning. The digital asset experienced several sharp drops and rapid rebounds but remained above $81,000 for most of the session and traded back above $81,500 later, up about 1.6% on the day and nearly 7% over the prior week.

The price jump caused a wave of derivative liquidations. Exchange data show roughly $202 million in short positions were liquidated after the surge and about $57 million in long positions were closed over the same window. In the most recent 24-hour period, approximately $123 million in short bets and $9 million in long bets were liquidated.

Energy markets moved in step. Reports of targeted strikes at the Fujairah oil terminal briefly pushed crude prices up about 5% before U.S. restraint reduced fears of a wider conflict. Brent crude fell toward $109 per barrel and U.S. West Texas Intermediate moved to about $102 per barrel after gains faded.

Market participants noted that concentrated short positioning increased vulnerability to rapid squeezes when buyers entered. Traders continue to monitor the security of the Strait of Hormuz and regional tensions for their potential impact on markets.