Bitcoin Breaks Above $80,000 as Trump Announces Strait of Hormuz Escort Operation

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Bitcoin rose above $80,000 late Sunday, gaining 2.6% over 24 hours as President Trump announced “Project Freedom,” an operation to escort stranded cargo ships out of the Strait of Hormuz. The move breaks through a resistance level that had capped price action for weeks and comes alongside a fifth consecutive week of net inflows into U.S. spot Bitcoin ETFs.

Bitcoin Clears $80,000 While Ether and XRP Follow With 2-4% Gains

Bitcoin traded at $80,150 as of 11:40 p.m. ET Sunday. Ether gained 3.6% to $2,382, and XRP added 2% to $1.41. The rally pushed Bitcoin above a level that had acted as a ceiling since mid-April. Nick Ruck, director of LVRG Research, said the move confirms buyer strength after the earlier pullback.

“The quick shift places near-term momentum firmly as bullish and confirms buyer strength after the earlier pullback,” Ruck said.

Dominick John, an analyst at Zeus Research, described the break as a technical short squeeze through what he called a major psychological resistance zone.

Trump Announces “Project Freedom” to Escort Ships Through Hormuz

Trump said in a Truth Social post on Sunday that the U.S. would guide stranded ships out of the Strait of Hormuz “so that they can freely and ably get on with their business.”

He framed the initiative as a humanitarian response to ships from uninvolved countries that have been locked in the strait amid the U.S.-Iran conflict. The operation is set to begin Monday morning Middle East time. U.S. Central Command confirmed it will deploy guided-missile destroyers, more than 100 aircraft, unmanned platforms, and 15,000 service members to support the mission.

“The mission, directed by the President, will support merchant vessels seeking to freely transit through the essential international trade corridor,” CENTCOM said.

Trump also struck an optimistic note on diplomacy, saying his representatives were holding “very positive” discussions with Tehran that could lead to a constructive outcome.

Iran Calls the Escort Operation a Potential Ceasefire Violation

Ebrahim Azizi, a senior Iranian lawmaker, warned that any U.S. interference in the Strait of Hormuz would be treated as a violation of the existing ceasefire.

Oil markets reacted with restraint. Brent crude edged up 0.26% to $108.49 a barrel, while WTI slipped 0.12% to $101.84. The muted oil response contrasts with sharper moves earlier in the conflict, when Hormuz-related headlines pushed Brent above $111.

Spot Bitcoin ETFs Post a Fifth Straight Week of Inflows

U.S. spot Bitcoin ETFs recorded a fifth consecutive week of net inflows, totaling $153.87 million last week, according to SoSoValue data. The streak has provided a consistent bid under the market through a period of elevated geopolitical uncertainty.

“Sustained five-week inflows into U.S. spot bitcoin ETFs highlight growing institutional support and confidence in bitcoin as a strategic asset in portfolios,” Ruck said.

Jobless Claims, Iran Talks, and ETF Flows Set the Agenda for the Week

John said traders will be focused on three signals this week: May 7 initial jobless claims for a read on labor market strength, U.S.-Iran negotiation headlines for risk sentiment, and whether the ETF inflow streak holds or fades.

The $80,000 break gives Bitcoin its first clean close above the level since the resistance formed in mid-April. Whether it holds through Monday’s U.S. session, particularly as the Hormuz escort operation begins and Iran’s response becomes clearer, will determine whether the breakout sticks or reverses into the prior range.