Bitcoin Reclaims $81,000 for the First Time Since January
Bitcoin (BTC) topped $81,000 on May 5, its highest price since January, as spot ETF inflows stretched to a fifth consecutive week and optimism around congressional stablecoin legislation lifted broader cryptocurrency sentiment. The token reached $81,634 in the session, according to market data.
Crypto fund inflows extended their streak as institutional buyers absorbed more supply than miners produced. The move pushed Bitcoin’s market cap above $1.63 trillion.
Bitcoin Tops $81,000 as Buyers Return
The rally developed across the American trading session on May 5.
Bitcoin crossed $80,000 earlier in the day and continued through $81,000 as equity markets also posted gains, with the Nasdaq closing at a record high. The two markets moved together as investors weighed easing geopolitical risks and a run of strong corporate earnings.
Spot Bitcoin ETF inflows have now run for five consecutive weeks, a stretch that Blockonomi reported marked Bitcoin’s strongest daily close since January.
The Sherwood News market wrap for May 5 placed Bitcoin at $81,501, tying the move to building confidence that lawmakers would advance the CLARITY Act, a proposed federal framework for digital asset classification.
Optimism around the CLARITY Act contributed to a broader lift across cryptocurrency markets. Circle (CRCL), the stablecoin issuer behind USD Coin (USDC), surged nearly 20% Monday after legislators reached a compromise on the bill’s language. That move carried over into Bitcoin as investors read clearer regulatory guardrails as a net positive for institutional adoption.
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What Is Driving the Five-Week Inflow Streak
Spot Bitcoin ETFs, exchange-traded funds that hold actual Bitcoin and allow traditional investors to gain price exposure without holding the underlying asset directly, have absorbed substantial supply since their U.S. launch in early 2024.
The current five-week inflow streak suggests institutional allocators have resumed accumulation after a period of reduced activity in February and March 2026.
The BlackRock iShares Bitcoin Trust, ticker IBIT, has led inflows during this stretch. Social media commentary on May 5 noted that search interest in “Bitcoin” sat at September 2020 levels, a period that preceded one of the asset’s largest bull cycles.
While search data is an imperfect demand proxy, the comparison drew attention among market participants tracking retail re-engagement.
Public companies also stepped up purchases in Q1 2026, buying more Bitcoin than in any prior quarter on record, a trend that tightens the available float as ETF demand compounds.
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How We Got Here
Bitcoin peaked above $109,000 in January 2026, setting an all-time high before a sharp reversal tied to macroeconomic uncertainty, Federal Reserve rate rhetoric, and a pullback in risk assets broadly. The token spent February and March consolidating, trading mostly between $75,000 and $85,000 before slipping below $80,000 in April as geopolitical tensions around the Strait of Hormuz weighed on commodity and risk markets simultaneously.
The recovery began in late April as cease-fire signals from the Persian Gulf emerged and equity markets rebounded.
Bitcoin followed equities higher through the final week of April, then accelerated in early May as the CLARITY Act compromise news broke. The $81,000 level is significant as a reference point: it was the last price seen before a sharp January selloff, making it a technical resistance zone that traders had watched for weeks.
Prior to Tuesday, the most recent close above $81,000 was recorded in January 2026, meaning May 5 represents the first confirmed reclaim of that level in roughly four months.
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What to Watch Next
The immediate test is whether Bitcoin can hold above $81,000 through the week. A sustained close above that level would open the path toward $85,000, the next widely cited resistance zone before the January all-time high comes back into view.
The CLARITY Act’s progress in the Senate carries more weight than any single data point right now.
A stall in legislative momentum could dampen institutional appetite, particularly for firms that need regulatory certainty before expanding cryptocurrency allocations.
On-chain data and ETF flow reports will be the key metrics to track. If inflows slow or reverse during a period of strong price action, that would signal that current buyers are largely speculative rather than structural.
A sixth consecutive week of positive ETF flows would strengthen the case that the current cycle has more room to run.
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