Bitcoin Hits 3-Month High

Bitcoin climbed above $80,000 in early May, reaching its highest level since February, as it tracked gains in other risk assets. Sentiment was also lifted by optimism that the US could reach an agreement on a key stablecoin yield provision, potentially paving the way for broader crypto legislation to advance in the Senate. Meanwhile, markets assessed comments from President Trump that the US would begin guiding neutral vessels through the Strait of Hormuz to help them navigate the conflict zone with Iran. However, a senior Iranian official warned that any US involvement in the waterway would be viewed as a violation of the ceasefire. The strategic passage remains a key flashpoint, with shipping disruptions inserting volatility to broader risk assets. Despite this turbulence, Bitcoin has remained resilient, rising about 12% in April. Institutional demand also improved, with US Bitcoin exchange-traded funds recording $630 million in net inflows last week.