Bitcoin rose as much as 1.6% to $79,488 on Monday, marking its highest level since January 31 and continuing its gradual move toward the $80,000 mark, according to Mint. The world's largest cryptocurrency was hovering around $79,100 as investors assessed recent tensions between the US and Iran over the Strait of Hormuz. Ether, the second-largest digital asset, climbed 1.7% during the same session. The rally follows an Axios report that Iran has put forward a fresh proposal to the US to reopen the Strait of Hormuz, while suggesting nuclear negotiations be postponed until the US lifts its naval blockade. The potential closure of this key global trade route has fueled volatility in oil prices and risk assets amid tensions involving the US and Israel.
The cryptocurrency surge was driven by reports from Axios that Iran has offered a new proposal to the US to reopen the Strait of Hormuz, as reported by Bloomberg. On Friday, both U.S. and Iranian officials announced that the Strait of Hormuz had been reopened to shipping, marking real progress that had a chance of becoming permanent. There were still concerns about mines in the waters, and the American side insisted it was maintaining its naval blockade. MSCI's Asia Pacific share benchmark rose 1.7% and its emerging markets index climbed to a record after these developments, with Asian chip stocks outperforming significantly. Taiwan Semiconductor Manufacturing Co. — Asia's most valuable stock — surged 6% to a record, while a gauge of Asian tech stocks also reached an all-time high. However, recent prediction market data from Polymarket shows 99.85% odds against a US-Iran ceasefire extension past April 22, 2026, with $21 million in 24-hour trading volume as talks appear to have stalled.
Bitcoin has gained 16% so far in April, putting it on pace for its first monthly double-digit gain since May 2025, according to Bloomberg reports. 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, as reported by Bloomberg. US-listed spot Bitcoin ETFs have seen net inflows of roughly $2.5 billion in April, putting it on pace to double March's total, with institutional buyers returning to the funds after four consecutive months of net outflows. Riya Sehgal, Research Analyst at Delta Exchange, noted that "crypto markets are showing a measured recovery rather than outright euphoria, with a notable shift being the return of US institutional participation, alongside consistent accumulation from large players like Michael Saylor's Strategy, which is tightening available supply and reinforcing a structural bid in the market."
From a macro perspective, elevated interest rates, geopolitical tensions, and the upcoming Federal Reserve decision are limiting aggressive risk appetite, keeping the rally controlled, according to Mint. Technical positioning remains constructive, with $75,000 on Bitcoin and $2,300 on Ethereum acting as critical support levels, as noted by Delta Exchange. A decisive breakout above $80,000 could push Bitcoin toward the mid-$80,000 range, while failure to hold current levels may trigger short-term retracements. Avinash Shekhar, Co-Founder & CEO of Pi42, recommended investors should stay measured in their approach, using phases of consolidation to build exposure gradually rather than chasing sharp moves. "Staggered allocations and a focus on quality assets like Bitcoin and Ethereum can help navigate near term volatility, while keeping an eye on key technical levels for confirmation of trend strength," Shekhar advised.
