Bitcoin pushed above $82,000 on Sunday after a volatile session tied to fresh geopolitical headlines and continued institutional demand. The move came as spot Bitcoin ETFs extended their inflow streak and traders reacted to progress around US crypto regulation.

Bitcoin briefly dropped from $81,430 to $80,520 after US President Donald Trump rejected Iran’s latest peace proposal, calling it “totally unacceptable” in a Truth Social post. Markets initially reacted to fears that tensions in the Middle East could drag on longer than expected.

The sell-off did not last long. Bitcoin reversed sharply and climbed nearly 2.3% within three hours, reaching $82,347. More than $126.76 million in short positions were liquidated in the past 24 hours, according to Coinglass data. At press time, Bitcoin trades around $81,700 after briefly touching its highest level since May 6.

ETF Demand and Regulation Keep Bitcoin Supported

Spot Bitcoin ETFs remain one of the biggest drivers behind the current rally. US spot Bitcoin ETFs recorded $622.7 million in weekly net inflows last week, extending the current inflow streak to six straight weeks.

The funds have now attracted more than $3.4 billion during that six-week stretch. Institutional demand continues to tighten available supply as ETF issuers keep accumulating Bitcoin from the open market.

Analysts also pointed to improving regulatory conditions in the United States. The Senate Banking Committee confirmed it will hold a markup hearing for the CLARITY Act on May 14, reviving momentum around one of the crypto industry’s most important market structure bills.

Importantly, even with the geopolitical volatility, Bitcoin has gained nearly 30% since the US-Iran conflict began on Feb. 28. The asset has outperformed both gold and the S&P 500 during that period.

Related: Top 6 Crypto News That Shook the Crypto Market This Week

SUI Leads Altcoin Market With 25% Rally

While Bitcoin pushed higher, SUI became the strongest-performing major altcoin of the session. The token surged 25% in 24 hours to $1.34 after a series of institutional and ecosystem developments boosted demand while reducing available supply.

One of the biggest catalysts came from Nasdaq-listed SUI Group Holdings, which announced it would stake all of its 108.7 million SUI holdings. The amount equals roughly 2.7% of SUI’s circulating supply.

The move removed a large amount of liquid tokens from the market at a time when nearly 74% of the total SUI supply was already staked. With fewer tokens available for trading, buying pressure accelerated the rally quickly.

Institutional interest also increased after CME Group launched SUI crypto futures. Analysts said the futures product opened the door for more regulated exposure to the asset. 

At the ecosystem level, Nigeria-based fintech company Paga announced a partnership with the Sui blockchain focused on tokenized assets and cross-border payments.

Related: Bitcoin Price Prediction: Rising Wedge and Unfilled CME Gaps Put Late Longs in Danger