BTC prints its highest level since January, even as UAE air defenses engage Iranian missiles and drones.
Bitcoin punched above $81,000 on Tuesday for the first time since January, capping a 7% weekly gain that has lifted total crypto market capitalization to $2.77 trillion, up 0.8% over the past 24 hours, according to CoinGecko.
BTC last traded at $81,303, with Ether holding around $2,362 and major altcoins posting modest gains. Notably, the rally is holding up despite an escalating standoff between Washington and Tehran around the Strait of Hormuz.
ETF Demand Returns
U.S. spot Bitcoin ETFs hauled in $532 million on Monday, building on Friday’s $630 million inflow, according to SoSoValue. The two-day total of more than $1.16 billion has lifted cumulative net inflows since the January 2024 launch to $59.25 billion.
That figure remains shy of the $61.19 billion record set last October but marks a meaningful unwind of the $6.38 billion that bled out between November and February. The complex has now strung together two consecutive months of net inflows, signaling a return of institutional appetite after the Q1 drawdown.
Spot Ethereum ETFs have also turned a corner, posting back-to-back inflows of $101.18 million on Friday and $61.29 million on Monday after a stretch of late-April outflows. Cumulative ETH ETF inflows now stand at $12.08 billion, with $13.97 billion in total net assets.
Macro And Regulatory Backdrop
Geopolitical risk continues to hang over the rally. The UAE’s Defence Ministry confirmed that its air defense systems engaged Iranian missiles and drones over parts of the country on Tuesday. President Trump urged Tehran to “do the smart thing” and make a deal, while Pentagon chief Pete Hegseth said the ceasefire with Iran is “not over” despite the escalating standoff in the Strait of Hormuz.
So far this week, the ETF bid and regulatory tailwinds have outweighed the headline risk, but the situation leaves the rally exposed to a sudden risk-off rotation if the conflict broadens.
Investors are also positioning ahead of Kevin Warsh’s expected start as Federal Reserve Chair on May 15.
HYPE Leads Altcoins
Hyperliquid’s HYPE token added 6.7% on the day and 11.9% over the week to trade near $44, making it the standout among the Top 15 cryptocurrencies. The rally follows the mainnet activation of HIP-4 over the weekend, which introduced fully collateralized, event-based contracts.
DOGE was the other notable mover among large caps, rising 2.7% on the day and 14.3% over the week.
