Bitcoin tops $80K amid Middle East tensions, causing $270M in liquidations and signaling crypto winter's end.

Bitcoin surged past $80,000 to a three-month high of $80,617 on May 4, pushing its market cap over $1.6 trillion and suggesting the end of the recent crypto winter. The rally was partly driven by geopolitical tensions in the Middle East, including U.S. naval escorts through the Strait of Hormuz and missile interceptions by the UAE. These events caused oil prices to spike and increased market volatility, leading to $270 million in liquidations on leveraged bitcoin positions. Economists warn that without a peace deal between the U.S. and Iran, global recession risks may rise, keeping markets on edge.