Bitcoin price rose nearly 3% to $78,700 on May 1 as Iran submitted a new peace proposal through Pakistani mediators to the United States, easing oil pressure and improving risk sentiment across global markets for the second time in a week.
Bitcoin price was trading at $78,722 on May 1, extending gains as US markets opened. CNBC reported that Iran sent an updated peace proposal to mediators in Pakistan, the latest diplomatic signal in a weeks-long negotiation over ceasefire terms, sanctions relief, and control of the Strait of Hormuz. Oil prices edged lower on the development, releasing pressure from one of the primary macro headwinds that had weighed on crypto and equities all week.
As crypto.news reported, Iran’s expected submission of a revised proposal compresses the “war premium” baked into oil markets and is modestly supportive for risk assets, but keeps Bitcoin hostage to headline volatility until a concrete deal is signed. The move from $74,900 on April 29 to $78,700 on May 1 retraced nearly the entire post-FOMC selloff, driven by the same diplomatic signal dynamic that produced every Bitcoin recovery during the conflict. “I think $80,000 is quite a resistance. We need a confident push through that level,” said 21Shares chief market strategist Adrian Fritz. “Once we’re above that, it could spark some momentum. People are back in profit, especially the ones that invested more recently.” Fritz added that a move above $85,000 could signal the first signs of a broader reversal.
As crypto.news documented, Bitcoin reached $78,400 during the prior week before being rejected sharply when hostilities resumed, establishing a clear pattern: every credible diplomatic signal produces a fast BTC repricing, and every breakdown reverses it within hours. As crypto.news tracked, hopes of a broader US-Iran deal have consistently fuelled bets on a BTC retest of $80,000 if ETF inflows resume and oil drops back toward pre-war levels. The $80,000 level has now been tested and rejected twice in 2026, making a decisive break above it, confirmed by sustained ETF inflows and stable oil, the clearest signal that the Iran-driven macro overhang on Bitcoin has meaningfully lifted.
