Key Takeaways:
- Bitcoin climbed to $82,000 on May 6, gaining over $5,000 in value as geopolitical tensions eased.
- The rally pushed the total crypto economy past $2.8 trillion and sparked $54.6 million in liquidations.
- 10X Research notes that while bitcoin is up 7% this month, cautious investors await a macro catalyst.
Bitcoin Momentum Builds
On May 6, bitcoin briefly tapped $82,400 as it maintained momentum that has seen it add more than $5,000 to its value since the beginning of the month. Market data showed bitcoin, which had retreated to $81,900 at the time of writing (5:53 a.m. EDT), was still up 1.6% over 24 hours, leaving it on course to log its third successive daily gain.
Bitcoin’s latest surge lifted its market capitalization to $1.64 trillion, up from $1.63 trillion observed less than 12 hours earlier. The top cryptocurrency’s momentum helped pull the crypto economy’s total market cap past $2.8 trillion. The rally also triggered the liquidation of $66 million in leveraged short positions in just four hours.
The cryptocurrency was initially buoyed by the Trump administration’s announcement of a pause in an operation to guide ships stranded in the Persian Gulf through the Strait of Hormuz. Later, fresh reports suggested that Washington and Tehran were closer to a deal than at any time since the war started, giving the digital asset another boost.
Although events and rhetoric from the Trump administration and Iran have influenced global equities, bitcoin has seemingly shrugged these off. Since the beginning of the month, bitcoin is up 7% while the Nasdaq, which it often moves in tandem with, has jumped by just under 2%.
While some technical analysts see the break above $80,000 as evidence that bitcoin has transitioned from a bear market, many investors remain unconvinced. Trading volumes remain subdued, and with funding rates still negative, some traders appear hesitant or are waiting for a macro catalyst, according to 10X Research.
However, in a post on X, the 10X Research team insisted that historical trends suggest bear markets do not end with a single headline. Instead, they conclude when indicators turn and risk-reward ratios shift, while most participants remain on the sidelines. The team added that a recent subscriber survey found that while sentiment has improved, positioning has not yet followed.
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