Bitcoin touched a 12-week high before retreating slightly as traders digested conflicting signs about the progress of US-Iran talks to end the conflict in the Middle East.
The original cryptocurrency hit $79,488 early Monday in Europe, its highest level since Jan. 31, before giving up gains to trade around $77,900. A report from Axios that Iran had proposed a new deal to reopen the Strait of Hormuz initially boosted investor sentiment, although a rise in oil prices put a damper on risk appetite.
Since the war between the US and Iran broke out at the end of February, traffic through the strait, a critical trade waterway, has at times come nearly to a halt. News of start-stop negotiations about ending the conflict has driven swings in oil and risk assets.
Bitcoin had been grinding back toward the $80,000 level in recent sessions as traders covered short positions and institutional demand improved. The token is up 16% so far in April, putting it on pace for its first monthly double-digit gain since May 2025. The Michael Saylor-led Bitcoin accumulator Strategy Inc. has bought $3.9 billion worth of the token so far this month, the most in a year, according to company data compiled by Bloomberg.
"The risks are real. US-Iran peace deal odds have collapsed, a macro overhang that could reprice risk assets broadly,” said Rachael Lucas, an analyst at BTC Markets. "$80,000 is where many recent buyers are approaching breakeven, which is typically where selling pressure emerges as they rotate out of their positions.”
Jeff Ko, chief analyst at CoinEx, said technical resistance above $79,000 made it a "natural spot for profit-taking.” Investors are now positioning for interest rate decisions from the Federal Reserve and European Central Bank this week, he added.
US-listed spot Bitcoin ETFs have seen a notable recovery in demand this month. Net inflows in April have reached roughly $2.5 billion, on pace to double March’s total. Institutional buyers returned to the funds in March after four consecutive months of net outflows. - Bloomberg
