Daily Market Update: Bitcoin and Stock Futures Rise After Trump Announces Project Freedom

TLDR

• Crypto market cap climbed to $2.63 trillion after Trump announced the Strait of Hormuz escort operation
• Bitcoin pushed past $80,000 for the first time this session, up 2.29% on the day
• Zcash jumped 10% in 24 hours, breaking a key multi-month resistance level
• S&P 500, Nasdaq, and Dow futures all gained Sunday evening following the news
• Iran confirmed it received a US peace proposal, raising hopes of de-escalation

Trump announced “Project Freedom” on May 3 — a US military operation to safely escort civilian ships through the Strait of Hormuz beginning May 4.

The move was widely read as a de-escalation signal. Trump also described ongoing diplomatic talks with Iran as “very positive,” and Iran confirmed it had received a formal US response to its latest peace proposal through Pakistani intermediaries.

Oil prices dropped in response. Both WTI and Brent crude eased as the risk premium tied to the waterway conflict faded, pushing capital toward equities and crypto.

US stock futures moved higher Sunday evening. S&P 500 contracts gained 0.2%, Nasdaq 100 futures rose 0.1%, and Dow futures added 0.2%. The moves follow a strong Friday session where the S&P 500 and Nasdaq both closed at record highs.

Crypto responded with more force. Total market cap rose 1.88% to $2.63 trillion, adding $47.96 billion since Sunday’s close. The market has been trading inside an ascending channel since February 24 and is now testing the upper boundary at $2.65 trillion.

Daily Market Update: Bitcoin and Zcash Lead Crypto Gains

Bitcoin crossed $80,000 on a 2.29% session gain. Analysts Tom Lee and Raoul Pal both pointed to short positioning at historically low levels. Lee described the recent weakness as a “hidden bear phase” driven by liquidity withdrawal. Pal called it a mid-cycle correction.

Zcash was the strongest performer in the top 100 coins, rising 10% over 24 hours after clearing a resistance level that had held for several months.

On the technical side, the 50-day moving average crossed above the 100-day moving average in early May. A daily close above $2.65 trillion would open the path toward the 200-day moving average at $2.81 trillion. If the market stalls, support sits at $2.56 trillion and $2.49 trillion.

Daily Market Update: Ethereum Validator Queue Flags Stress

Ethereum saw its validator exit queue spike 72,000% to 433,158 ETH. The surge followed $625 million in DeFi exploits during April, with the largest being a $292 million attack on KelpDAO’s bridge, attributed to North Korea’s Lazarus Group.

The entry queue remains far larger at 3.6 million ETH, seven times the size of the exits, suggesting the network is not facing a mass departure.

CENTCOM is deploying 15,000 troops, guided-missile destroyers, over 100 aircraft, and unmanned platforms as part of the Project Freedom operation that began May 4.

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