Whales carpet-bombing $2.5 billion on Trump's truce extension... Will Bitcoin break $80,000?

▲ Donald Trump, Bitcoin (BTC) / AI Generated Image ©

The virtual asset market, which had been suppressed, is staging an explosive rally, breaking through $77,500, following the sudden announcement by US President Donald Trump to indefinitely extend the Iran truce and the news of Strategy's astronomical Bitcoin accumulation.

According to cryptocurrency specialized media CoinDesk on April 22 (local time), Bitcoin (BTC) was trading at $77,541 on Wednesday morning, up 2.2% from the previous day and 4.3% on a weekly basis, completely shaking off the Middle East-related headwinds. Driven by the flagship's relentless surge, top market cap cryptocurrencies all joined the bullish market, with Ethereum (ETH) up 2.1% to $2,366, BNB up 1.3% to $640, and Solana (SOL) up 1.8% to $87.

There were two powerful catalysts driving the market. First, President Trump pointed to serious divisions within the Iranian leadership and announced an indefinite extension of the truce, while maintaining the blockade of the Strait of Hormuz but reserving attacks on Iran. Following this news, investor sentiment rapidly improved, and S&P 500 and Nasdaq 100 index futures, which had closed down, rebounded, giving Bitcoin upward momentum.

In addition, solid financial support from a giant institution was added. Strategy announced that it had purchased 34,164 Bitcoins for $2.54 billion, the largest amount since November 2024. With this purchase, made at an average price of $74,395, the company's total holdings increased to 815,061 BTC (total purchase price $61.6 billion, average price $75,527), successfully turning a profit in several months based on current prices.

Fund inflows into global cryptocurrency funds also reached their highest level since mid-January. According to CoinShares data, a total of $1.4 billion flowed into global funds last week, with Bitcoin attracting $1.12 billion and Ethereum $328 million, leading the market. A survey by Nomura Securities also showed that 65% of Japanese institutional investors hold Bitcoin for portfolio diversification purposes, and the majority plan to increase their allocation by 2% to 5% within the next three years, proving a robust structural buying trend.

Experts assess that Bitcoin is trading above the average cost of short-term holders, which is $69,400, significantly reducing the risk of a cascade of liquidations due to sell-offs. However, for this uptrend to continue, it must overcome the instability in the Strait of Hormuz and definitively break through the $80,000 mark, triggering a short squeeze (buying pressure that occurs to liquidate or cover short positions). If it falls below $75,000, they analyze that the truce's positive effect has already been priced in, and additional momentum will be needed.

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