Bull market is coming? Bitcoin breaks through the $80,000 mark to reach a new high this year, market risk appetite is on the rise.

The world's largest cryptocurrency Bitcoin broke through the $80,000 mark on Monday for the first time since the end of January, boosted by expectations of changes in the Middle East situation and improved prospects for cryptocurrency policies, leading to a rebound in market risk appetite. Data shows that Bitcoin rose by about 2.1% at one point during the day, reaching a high of $80,594, and then fluctuated around the $80,000 mark during the New York trading session. Other mainstream cryptocurrencies such as Ethereum and Solana also saw slight gains. Since the escalation of tensions between the United States and Iran, Bitcoin has risen by about 20%, demonstrating the overall resilience of digital assets in the context of geopolitical turmoil and rising oil prices. The market is also being driven by favorable policy expectations. Investors are optimistic about the possibility of the United States reaching an agreement on stablecoin-related terms, which may help clear the way for cryptocurrency-related legislation in the Senate, further boosting market sentiment. Derivative market data shows that in the past 24 hours, the size of liquidated short positions in the cryptocurrency market reached about $359 million, much higher than the liquidated long positions of about $150 million, indicating that short covering has pushed prices higher. Although the funding rate for Bitcoin perpetual futures remains negative, prices continue to rise, indicating strong upward momentum. Meanwhile, on the cryptocurrency options trading platform Deribit, the open interest in call options with a strike price of $80,000 has significantly increased, becoming one of the most popular contracts, indicating growing expectations for further upside above this price level. The market's assessment of the Middle East situation remains complex. U.S. President Trump has stated that he will provide guidance for ships not involved in the conflict to pass through, while Iran has warned that any U.S. intervention in the Strait of Hormuz could be seen as a violation of the ceasefire agreement. Geopolitical risks still exist, which could lead to sudden market shocks. Bitcoin had previously hit a record high of over $126,000 in October last year, before falling to around $60,000 in February this year. Recent price recovery has been partly due to continued inflows of institutional funds. Data shows that the U.S. Bitcoin exchange-traded fund (ETF) recorded a net inflow of about $630 million last Friday. Market participants believe that the $80,000 mark holds significant psychological significance. Richard Galvin, Chairman of cryptocurrency investment firm DACM, stated that this level has always been a crucial resistance level for the market, and if effectively surpassed, it could bring further upward momentum to the asset class.