Why is the crypto market going up today? (May 5)

The crypto market resumed its uptrend on Tuesday, rising 1.2% to $2.76 trillion as oil prices eased, after Iranian officials hinted at progress in U.S.-Iran peace negotiations.

Bitcoin (BTC) climbed 3.5%, briefly moving above the $81,000 level before settling at around $80,855 at press time. Ethereum (ETH) gained 1% to trade above $2,381, while other major assets such as XRP (XRP), Solana (SOL), and Tron (TRX) showed relatively muted price action. Among the top performers on the day were Toncoin (TON), MemeCore (M), and Morpho (MORPHO).

The rebound across digital assets triggered a wave of short liquidations, with roughly $225 million in bearish positions wiped out over the past 24 hours, according to derivatives data. The move suggests that traders positioned for further downside were forced to exit as prices pushed higher.

Market sentiment also improved notably. The Crypto Fear and Greed index rose by 10 points, moving out of fear territory and back into neutral levels, reflecting a shift in investor outlook after days of caution.

The recovery in crypto prices came alongside a pullback in oil and energy markets. Comments from Iran’s foreign minister helped ease concerns, as officials indicated that recent attacks in the UAE and against U.S. interests may have been attempts to provoke a larger conflict. They added that ongoing talks between Iran and the United States, reportedly mediated by Pakistan, continue to show signs of progress.

Tensions had escalated earlier after U.S. President Donald Trump warned of severe retaliation following reports of Iranian missile strikes in the UAE and unverified claims of a U.S. naval vessel being targeted in the Strait of Hormuz.

Traditional safe-haven assets such as gold and silver posted modest gains during the session, while Asian technology stocks also edged higher, mirroring the cautious recovery seen in risk assets.

Looking ahead, investors are turning their attention to upcoming U.S. macroeconomic data, including Nonfarm Payrolls and JOLTS job openings figures.

These releases are expected to offer further clarity on the strength of the labor market and could influence expectations around Federal Reserve policy, which remains a key driver for both crypto and broader financial markets.