Bitcoin tops US$80,000 for three-month high as stocks rise
Optimism over a US stablecoin deal and potential Senate crypto legislation has lifted traders’ spirits
Add BT as a preferred source
[SINGAPORE] Bitcoin rose above US$80,000 for the first time since January as bullish sentiment lifted risk assets, with Asian shares rallying and US technology-stock futures pointing to further gains.
The original cryptocurrency climbed as much as 2.1 per cent to US$80,594 on Monday (May 4), its highest level since Jan 31, before paring gains to trade around US$79,700 at 10 am in London. Smaller tokens like Ether and Solana also posted modest increases.
Bitcoin is up roughly 20 per cent since the start of the US-Israeli war on Iran, highlighting how digital assets have largely weathered the conflict and the oil-price spike it unleashed. Optimism that a US deal may be reached on a key stablecoin yield provision, potentially clearing a path for sweeping crypto legislation to move forward in the Senate, has added to the risk-on mood.
Sean McNulty, Asia-Pacific derivatives trading lead at FalconX, said institutional activity in the derivatives market suggests “high conviction in a move towards US$85,000 by mid-month.”
The crypto gains came as MSCI’s Asian equities gauge neared the all-time high it reached in February – just before the US-Israeli war on Iran began – as stronger-than-expected corporate earnings from technology companies last week fuelled investor optimism.
Markets are digesting mixed messages over Iran. President Donald Trump said the US would begin guiding ships not involved in the conflict through the Strait of Hormuz. A senior Iranian official warned that Teheran would consider any US interference in the Strait a ceasefire breach, according to an AFP report.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Bitcoin reached a record of just above US$126,000 in October last year, before a months-long swoon that dragged it down to around US$60,000 in February. The token has gradually regained ground from there, driven in part by rising institutional demand. US Bitcoin exchange-traded funds saw US$630 million of net inflows on Friday, according to data compiled by Bloomberg.
The US$80,000 level “has been a big psychological barrier” for digital-asset markets, said Richard Galvin, executive chairman at crypto investment firm DACM.
Caroline Mauron, co-founder at Orbit Markets, said a decisive break above the threshold would provide “further positive momentum to the asset class.” BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
