The cryptocurrency market staged a sharp rebound triggered by intensified diplomatic exchanges between the United States and Iran. Bitcoin surged close to $75,000 during the day, reaching its highest level in four weeks. The sudden upswing in prices led to a cascade of liquidations, particularly impacting leveraged short positions in the futures market.
Short sellers crushed amid massive liquidations
Over the past 24 hours, more than $530 million worth of leveraged positions have been wiped out across derivatives markets in response to the rally. Notably, approximately 80 percent of these liquidations stemmed from short positions in Bitcoin and Ethereum, as traders betting against the rise were forced out. Data from CryptoAppsy showed Bitcoin reaching an intraday high of $75,000, while the total value of the crypto market climbed to $2.6 trillion, marking its best level in a month.
CoinGlass reported that more than 177,000 traders saw their positions liquidated during this move. Of the total losses, $425 million were attributable directly to short trades on Bitcoin and Ethereum. Ethereum itself soared by 7.5 percent, breaching $2,380 for the first time since early February.
Commenting on global volatility, Jeff Mei, Chief Operating Officer at digital asset exchange BTSE, stated, “Expectations of a potential US-Iran agreement are supporting the market. Given the severe economic pressures Iran is facing, progress in negotiations seems likely and the markets are pricing this in.”
US-Iran tensions shift market dynamics
Underlying the latest market rally is the easing tension between the US and Iran. After the US increased its military presence in the Gulf of Oman, President Donald Trump indicated that Tehran was open to negotiations and that a deal could be possible if Iran agreed not to pursue nuclear weapons. Since Iran’s economy is heavily reliant on oil revenues, any long-term disruptions in the region could cause significant financial harm for the country.
Still, skepticism remains regarding the sustainability of the rally. An assessment from Valerius Labs warned that the current surge may be driven more by the quick liquidation of short positions than by lasting bullish momentum. The report emphasized the need for prices to remain above the 200-day moving average for a true trend reversal to take hold.
Long-term outlooks and institutional plays
At the Paris Blockchain Week, Tom Lee, chairman of Bitmine Immersion Technologies, described the recent correction phase as a “mini crypto winter.” Lee highlighted Ethereum’s structural strength, suggesting the asset could eventually surpass $60,000 within a few years as it emerges from a prolonged consolidation period. He pointed to institutional adoption and advances in AI applications as key drivers of future Ethereum growth.
Bitmine reported a quarterly net loss of $3.82 billion, with much of the deficit linked to unrealized value decreases in its Ethereum holdings. The company holds Ethereum at an average purchase price of $3,660—substantially above the current market price of $2,327. Nevertheless, Bitmine expanded its position by acquiring an additional 71,524 ETH on Monday, bringing its total to 4.6 million ETH, now representing over 4 percent of all Ethereum in circulation.
Lee commented, “Ethereum will reach its fair value, and $60,000 is plausible in the medium term. Our company maintains its long-term vision based on this potential.”
Meanwhile, veteran trader Peter Brandt, in an analysis published at the end of 2025, argued that Bitcoin was unlikely to reach the $200,000 mark before the third quarter of 2029. Brandt reminded investors that, historically, bull cycles in Bitcoin have often been punctuated by sharp corrections—as steep as 74 to 86 percent in four distinct cycles to date. He maintains 40 percent of his portfolio in Bitcoin, insisting that recent downturns have set the stage for a healthier market.
Digital payments and regulatory scrutiny: X Money under the spotlight
While price action makes headlines, regulatory debates are heating up in the US. Senator Elizabeth Warren sent a letter expressing concerns about the planned integration of the X Money payment system, which could feature stablecoin and crypto functionality, into Elon Musk’s X platform. She argued X Money poses potential risks to the financial system and national security.
A central concern involves compliance with the GENIUS Act, a law signed by President Trump that took effect in 2025, allowing companies to issue their own USD-pegged stablecoins. Warren raised specific questions about X Money’s partnership with Cross River Bank, probing possible regulatory violations.
Warren also criticized X Money’s advertised 6 percent deposit yield, suggesting it is unrealistic since the Federal Reserve’s target rate remains below this level. FDIC Chairman Travis Hill previously clarified that stablecoin deposits under the GENIUS Act are not FDIC-insured, although direct insurance bans have yet to be enacted.
Experts interpret Warren’s action as a sign that other tech firms could soon face new regulatory hurdles from Congress as they explore similar stablecoin initiatives.
