#Gate广场五月交易分享 Market explosion! Bitcoin breaks through the $80,000 psychological barrier, with a 24-hour volatility exceeding $2,300, as institutional accumulation and regulatory developments simultaneously ferment.
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Zongzi
Zongzi
Daily Information Sharing
May 4, 2026 11:09
Beijing
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Cryptocurrency market reaches a milestone! On May 4, Bitcoin strongly broke through the key psychological level of $80,000, hitting a nearly three-month high. During the session, a fierce battle unfolded with “rising then pulling back and stabilizing,” driven by four major positive factors resonating together, pushing Bitcoin past $80,000. The breakthrough was supported by the continuous catalysis of these four latest positives, each directly addressing core market pain points. Coupled with the intraday increase of over 1.69% on May 4, this further solidified the upward trend:
1. Institutions buy against the trend, ETF capital inflows hit a yearly high: Latest data shows that institutional funds are accelerating their Bitcoin holdings, becoming the main driver of this rally. On May 1, the net inflow into US spot Bitcoin ETFs totaled $629.8 million, setting the largest single-day inflow record since 2026. In stark contrast, XRP and Solana-related ETFs experienced outflows, showing a “weakness abandonment for strength preference” migration. Among them, BlackRock was the most aggressive, buying nearly $2 billion worth of Bitcoin in the past month, with holdings surpassing 810k BTC, accounting for over 3.8% of the total supply. Fidelity also increased holdings by $213 million. These two institutions played a key role in “contrarian accumulation” during the $6.19 billion outflows over three consecutive weeks at the end of April. As of now, the total assets of US spot Bitcoin ETFs have again exceeded $100 billion, with daily trading volume maintaining above $1.4 billion. Continuous institutional entry provides solid support for Bitcoin and is a crucial confidence factor for the price breakthrough on May 4.
2. Regulatory framework clarified, compliance process accelerates (domestic and international breakthroughs): The compliance breakthrough in the crypto market further alleviates investor concerns. On one hand, the SEC and CFTC in the US jointly issued regulatory guidelines, clearly classifying Bitcoin, Ethereum, and other crypto assets as “digital commodities,” not securities, providing a clear compliance path. This is the “greatest common divisor” reached after the game between new crypto forces and traditional Wall Street financial capital. On the other hand, Hong Kong’s first stablecoin licenses have been issued, with HSBC and Cinnet Financial Technology approved, marking the practical phase of compliant Hong Kong dollar stablecoins and further improving the compliant ecosystem for crypto assets, attracting more traditional funds to enter. It is important to note that domestic regulators still maintain a high-pressure stance. Previously, eight departments issued a notice on “further preventing and handling risks related to virtual currencies,” clarifying that virtual currency-related activities are illegal financial activities, strictly prohibiting all forms of virtual currency trading and speculation. This remains a key risk point for domestic investors.
3. Quantum security concerns eased, technological safeguards upgraded: Previously, market fears about the threat of quantum computing once suppressed Bitcoin’s gains, but the latest developments show this concern is gradually being alleviated. On one hand, the Bitcoin community has reached a preliminary consensus on the threat of quantum computing, with most opinions holding that Satoshi Nakamoto’s P2PK addresses should not be interfered with, and their assets are dispersed across about 22,000 addresses, making the actual risk of a full-scale quantum attack lower than expected. The community generally supports developing and testing post-quantum (PQ) cryptography as a backup solution. On the other hand, tech giants like Google and IBM are accelerating quantum technology R&D and laying out post-quantum cryptography transformation plans. Google has set 2029 as the deadline for completing this transition, providing technical security for Bitcoin’s long-term safety, easing long-term market concerns, and clearing technical obstacles for price increases.
4. Short squeeze pushes prices higher: The potential liquidation risk of short positions became a “catalyst” for this breakout. According to OEXN analysis, about $1.4 billion in short positions are at potential risk of liquidation. When Bitcoin surpasses the $80,000 key level, these shorts are forced to close, creating a “short squeeze” effect that further amplifies the price rise, pushing Bitcoin rapidly toward the 24-hour high of $80,420.90. Additionally, Bitcoin exchange balances have fallen to multi-year lows, with investors transferring tokens into cold wallets, reducing circulating supply and increasing upward pressure on prices. Coupled with the continuous fermentation of the intraday gain on May 4, this helped the price firmly stay above $80,000.
