Bitcoin slips back to $80,000 after reaching $82,700 on US-Iran deal optimism; $242 million short squeeze fueled rally
Synopsis
Bitcoin surged to $82,700 on optimism surrounding a US-Iran deal, which eased energy market concerns. However, it retreated to $80,000 as doubts emerged. Analysts note strong spot demand and institutional support, with Bitcoin dominance rising. Key levels to watch include $80,500 and a CME gap near $93,000.
Bitcoin slipped back to the $80,000 mark on Thursday after it reached the $82,700 mark, after optimism regarding the US-Iran deal filled the market and eased concerns over global energy markets. The cryptocurrency was trading at the $80,922 mark.
In the past 24 hours, Bitcoin and Ethereum slipped 0.5% and 2% respectively. Among the major altcoins, XRP, Dogecoin, and Hyperliquid corrected up to 4% whereas BNB, Solana, Tron, and Cardano rallied up to 1.5%.
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Akshat Siddhant, Lead quant analyst, Mudrex said the move triggered a sharp short squeeze, with more than $242 million in bearish liquidations recorded over the past 24 hours and a weaker U.S. dollar also added support to the rally.
Crypto TrackerTOP COINS (₹) BNB61,137 (1.46%)Tether95 (-0.23%)Bitcoin7,693,054 (-0.42%)XRP134 (-0.63%)Ethereum221,030 (-1.67%)
However, doubts around the progress of the deal following President Trump’s comments led to a pullback and currently trading near $81,000, Bitcoin needs to hold above $80,500 to maintain momentum, while today’s U.S. jobless claims data could drive the next move, Siddhant further said.
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The global crypto market capitalisation edged down 0.7% to $2.68 trillion, according to .
CoinSwitch Markets Desk said that Bitcoin climbed near $82.7K as easing tensions between US and Iran improved overall investor sentiment and falling oil prices, with WTI crude dropping below $90 per barrel, alongside stock market futures, supported crypto and other risk assets.
Investors should prioritize risk management, avoid FOMO-driven entries, and keep sufficient liquidity for volatility spikes, CoinSwitch Markets Desk further said.
In the past week, Bitcoin and Ethereum were up 7% and 4% respectively. Among the major altcoins, XRP, BNB, Solana, Tron, Dogecoin, Hyperliquid and Cardano rallied up to 8%.
Vikram Subburaj, CEO, Giottus said Bitcoin traded around $81,100 on May 7, 2026, remaining above the psychologically important $80,000 level despite a mild slowdown in momentum and the asset has managed to hold most of its recent gains after a steady institutional-driven rally.
Subburaj further said that price action still points to strong spot demand, rather than excessive speculation.
Here is what other analyst say
CoinDCX Research Team
Bitcoin climbed to $81,600 following comments from U.S. Secretary of State Marco Rubio that signaled a de-escalation in military tensions, a move that simultaneously cooled the dollar and oil.
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WazirX Market’s Desk
Bitcoin is trading at $81,039, while Ethereum is near $2,318, as crypto markets continue to track broader macro developments. Bitcoin dominance rose to 61%, its highest level since November 2025, indicating that capital continues to concentrate in Bitcoin.
Riya Sehgal, Research Analyst, Delta Exchange
Bitcoin’s recovery above $80,000 signals improving market sentiment, supported by ETF inflows, institutional participation, and stabilizing macro conditions. Traders are also closely watching the unfilled CME gap near $93,000, which remains an important liquidity zone as futures positioning and open interest continue to build.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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