Bitcoin Price Analysis: BTC Dips Towards $80,000 Amid Renewed Market Volatility

(MENAFN- Crypto Breaking) Bitcoin (BTC) climbed to an intraday high of $82,450 on Sunday after President Donald Trump knocked back Iran's latest proposal during negotiations to end the ongoing conflict. The rejection triggered wild swings across the market, and the flagship cryptocurrency tumbled towards $80,000 on Monday as volatility returned to the crypto market.

According to data from CoinGecko, BTC fell from around $81,500 to $80,500 minutes after President Trump called Iran's counteroffer“totally unacceptable.” However, buyers defended the $80,000 level as the rebound wiped out over $400 million in short positions.

Strategy To Replenish Bitcoin Reserves After Every Sale

Strategy co-founder Michael Saylor has said the company plans to buy far more Bitcoin than it will sell. Saylor's comments come as the company contemplates selling some of its Bitcoin reserves to fund dividend payments for its STRC perpetual preferred stock. Saylor stated in multiple interviews that while Strategy could sell some of its Bitcoin holdings, it would offset these sales with new purchases, adding that companies should be net accumulators of Bitcoin, not net sellers.

Morgan Stanley's spot Bitcoin ETF, the Morgan Stanley Bitcoin Trust (MSBT), has recorded $194 million in inflows since its debut, without a single day of outflows. Between its launch and May 7, the ETF recorded 17 days of inflows, 5 sessions with relatively little movement, and 0 days of net outflows. The fund's stability is remarkable given the current market conditions, and the bank also offers Bitcoin, Ethereum, and Solana through E*TRADE, its retail brokerage platform.

Amy Oldenburg, Morgan Stanley's head of digital assets, disclosed that the fund had $239.6 million in assets under management (AUM) as of May 7, adding that the fund recorded $20.6 million in inflows on its first day, along with $34 million in trading volume. The fund also has one of the lowest expense ratios at 0.14%, allowing it to undercut its competitors.

Markets Enter Crucial Week

Meanwhile, global markets are entering a critical week, with CPI, PPI, retail sales, and industrial data lined up. However, geopolitical developments could complicate matters after President Trump rejected Iran's counteroffer. Geopolitical tensions continue to dictate market reactions this year, with Bitcoin and equities experiencing considerable volatility owing to uncertainty tied to the ongoing US-Iran conflict.

The April CPI inflation data is set to be released on Tuesday, followed by PPI inflation data on Wednesday, and retail sales data and production numbers later in the week. The OPEC monthly report could also influence market expectations.

Bitcoin Price Analysis: BTC Traders Watch For Volatility

Bitcoin (BTC) plunged to a low of $80,504 on Monday but held above the $80,000 mark ahead of a data-heavy week. Despite the market swings, the flagship cryptocurrency held above key short-term support levels. Market analysts are divided on whether data releases this week and the evolving geopolitical situation could push investors towards risk assets or trigger another downturn.

The ongoing US-Iran conflict and the situation around the Strait of Hormuz continue to keep the cryptocurrency market, primarily Bitcoin, jittery. The waterway is crucial to oil and natural gas supply, carrying nearly one-fifth of global flows. Oil rose $4 a barrel, while Brent crude rose 4.5% to $105.85. The dollar gained for a second day due to robust US jobs data and safe-haven demand.

Bitcoin's recent price action has been linked to US-Iran headlines. The flagship cryptocurrency pushed towards $78,700 on May 1 after Iran sent a revised proposal, easing market pressure and improving sentiment. BTC crossed $80,000 on May 4 after President Trump announced“Project Freedom,” a US-led initiative to secure the Strait of Hormuz.

Analysts are keeping an eye on $80,000 and whether BTC can turn it into support. Crypto Tony, an analyst on X, stated that prediction market Polymarket puts the odds of BTC hitting $85,000 in May at 79%. Analysts have marked $78,000 as the first major support level should BTC slip below $80,000. A decisive move above $82,500 could push the flagship cryptocurrency to test $85,000. However, any adverse developments during the US-Iran negotiations could see prices dip again.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links.

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