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Investing.com -- Bitcoin hit over a three-month high on Tuesday, as risk sentiment was boosted after the U.S. said its ceasefire with Iran was still holding despite elevated tensions in the Strait of Hormuz.
Focus was also on top corporate holder Strategy’s earnings report, which showed operating loss significantly widening from a year ago, as expected. 
At 17:41 ET (21:41 GMT), Bitcoin was up 1.4% to $81,392.4, its highest level since the end of January. The world’s largest cryptocurrency reclaimed the $80k mark on Monday. 
"The $80,000 reclaim is psychologically significant, but the more important levels are just ahead: the 200-day moving average near $82,000 and ETF cost-basis references near $83,000 — the levels that would convert this move from a relief rally into something more structural," Iliya Kalchev, analyst at Nexo Dispatch, said. U.S.-Iran truce not over
The situation in the Middle East escalated quickly over the weekend and on Monday, after a U.S. military operation - dubbed "Project Freedom" - aimed at escorting commercial ships safely through the critical Strait of Hormuz was met with Iranian attacks on vessels in and around the vital waterway.

The developments threatened to upend a tenuous ceasefire between the U.S. and Iran and also pointed to continued supply disruptions due to the shuttering of the strait.

The U.S. on Tuesday calmed the mood somewhat by asserting that Project Freedom was a distinct effort solely to expedite safe passage of commercial ships through the strait.

"Project Freedom is defensive in nature, focused in scope, and temporary in duration—with one mission: protecting innocent commercial shipping from Iranian aggression. American forces won’t need to enter Iranian waters or airspace, it’s not necessary. We’re not looking for a fight," U.S. Secretary of War Pete Hegseth told reporters.

"Right now, we know we have a lane of safe passage that commercial shipping can float through," he said, adding that the ceasefire with Iran was not over.

Also helping to de-escalate tensions was some positive commentary from Iranian foreign minister Abbas Araghchi.

"Events in Hormuz make clear that there’s no military solution to a political crisis. As talks are making progress with Pakistan’s gracious effort, the U.S. should be wary of being dragged back into quagmire by ill-wishers. So should the UAE," Araghchi said on X.

While geopolitical tensions provide little direct risk for crypto, they tend to hurt prices by dampening investor appetite for overly speculative assets.

Strategy’s $14.5 billion in unrealized losses
Away from the war, focus was on Strategy’s first quarter earnings report on Tuesday.

The world’s largest corporate holder of Bitcoin saw its quarterly operating loss widen to $14.47 billion from $5.92 billion a year ago. The operating loss included unrealized losses of $14.46 billion on its digital assets.

The expected loss was largely due to fluctuations in the value of Strategy’s Bitcoin holdings, though the company grew its holdings 22% Y/Y to 818,334 bitcoins at the end of the quarter.

Strategy Chair Michael Saylor on Sunday said the company paused its weekly Bitcoin purchases ahead of its Q1 earnings.

Coinbase to cut 14% of workforce in AI-focused restructuring
Coinbase on Tuesday said it plans to lay off roughly 700 employees, or about 14% of its global workforce, as the cryptocurrency exchange looks to cut costs and reorient its business around artificial intelligence.

The company expects the process to be largely complete by the end of the second quarter, with associated charges of $50 million to $60 million, mostly covering severance and employee benefits.

It said that additional costs could arise from unforeseen factors related to the restructuring, with most charges expected to be recognized in the current quarter.

Coinbase shares closed 2.6% lower.

The move comes amid a broader slowdown in crypto trading volumes following a pullback in digital asset markets from their peak last October, as investor appetite has grown more cautious.

On May 3, 2026, President Trump announced "Project Freedom," a maritime operation designed to "guide" commercial vessels safely out of the Strait of Hormuz. The move follows months of regional tension that has left hundreds of merchant ships stranded in the Persian Gulf.

​Here are the key details of the plan:

​The Mission: "Project Freedom"

​Primary Objective: To evacuate neutral commercial ships and their crews who have been caught in the crossfire of the ongoing conflict between the U.S., Israel, and Iran.

​Humanitarian Focus: Trump framed the mission as a "humanitarian gesture," noting that many of the trapped crews are running low on food, water, and essential supplies.

​Target Group: The plan specifically targets ships from countries not involved in the Middle Eastern dispute, describing them as "victims of circumstance."

​Military & Strategic Presence

​While the White House initially emphasized "guidance" over a formal military escort, U.S. Central Command (CENTCOM) has deployed significant assets to support the operation:

​Assets: Guided-missile destroyers, over 100 land and sea-based aircraft, and approximately 15,000 service members.

​Current Activity: As of Monday, May 4, 2026, CENTCOM confirmed that two U.S.-flagged merchant vessels successfully transited the Strait under the new protection plan.

​Warning to Iran: Trump has stated that any interference with this "humanitarian process" will be dealt with "forcefully."

​Regional Reaction

​Iran: Iranian officials have characterized the move as a potential violation of the current ceasefire. The head of Iran’s National Security Commission warned that U.S. "interference" in the maritime regime of the Strait would be considered a hostile act.

​Diplomatic Context: The operation comes at a delicate time; Iran recently proposed a 14-point peace plan, which Trump has so far dismissed as "not acceptable."

​Despite the military presence, some analysts suggest the U.S. is currently prioritizing "information sharing" and diplomatic coordination rather than traditional close-ship escorts to avoid a full-scale naval confrontation while talks continue.