Bitcoin has reclaimed the $80,000 level as escalating US-Iran tensions over the Strait of Hormuz drive renewed volatility in digital assets. The strategic waterway has been a flashpoint since President Trump ordered a blockade in mid-April 2026, derailing peace talks and initially sending Bitcoin to $70,741.
Despite the geopolitical shock, the cryptocurrency bounced back roughly 12% from late February to mid-April. Analysts say the recovery reflects broader monetary instability and safe-haven demand, even as BTC remains well below its October 2025 all-time high of $126,198.
Prediction markets now show overwhelming confidence that Bitcoin will hold above key price thresholds through early May. Contracts for Bitcoin staying above $66,000 on May 6 and May 7 trade at 99.9% and 99.7% yes, while the May 8 threshold of $68,000 stands at 99.3% yes.
Investors are watching for further developments in US-Iran relations, the status of the Hormuz blockade, and any signals from the Federal Reserve on interest rate policy.