On Tuesday evening, Bitcoin surged past the $72,700 mark within minutes, following Donald Trump’s announcement on Truth Social that a two-week ceasefire had been agreed with Iran. The swift rally took many investors by surprise, especially those who had taken bearish positions in recent days.
Major liquidations hit short positions
In just a two-hour window, the cryptocurrency market saw a wave of liquidations totaling $595 million. According to data from CoinGlass, 118,489 investors incurred losses during this period. Of the total liquidations, a striking $427 million came from short positions—bets that Bitcoin and other assets would fall—while $168 million originated from long positions.
The single largest liquidation on the Binance exchange involved an $11.79 million BTC-USDT short position. Across the broader market, Bitcoin trades accounted for $245 million in liquidations, with Ethereum following at $126 million.
Tokenized commodity markets also experienced notable tremors. Traders holding positions in tokenized Brent crude oil saw $33 million in liquidations, while WTI oil contracts registered $42 million during the same timeframe. Oil was particularly volatile throughout the conflict, with the sharpest declines pushing Brent down to $99 and WTI to $95 per barrel.
Ceasefire reshapes market dynamics
The majority of the $595 million in liquidations occurred within just 12 hours, with short positions accounting for $398 million. This scale marked the most intense short squeeze seen since similar ceasefire headlines in March, reflecting how rapidly capital can shift in volatile market conditions.
The altcoin space also experienced heightened volatility. Solana endured $19.6 million in forced liquidations, followed by Zcash with $13.4 million, while XRP saw smaller-scale impacts. Even tokenized positions in precious metals, like gold and silver, were swept up in the broader market turbulence.
Trump referred to the development as a “mutual ceasefire,” emphasizing that U.S. military objectives had been achieved. Official statements from Iran confirmed the suspension, permitting oil tankers to transit through the Strait of Hormuz for the next two weeks under coordination with Iranian armed forces.
Sentiment in the market reached an extreme level during the conflict, with the Fear and Greed Index staying below 10. Data from Santiment indicated that negative sentiment far outweighed positive commentary on social media. However, the ceasefire announcement quickly triggered a reversal in market mood, leading to a sharp turn in price direction.
With Bitcoin’s spike to $72,700, the cryptocurrency returned to the upper bounds of the $65,000–$73,000 range that has defined trading since the conflict began. Whether this level can be sustained in the coming days remains to be seen, as uncertainties linger over both geopolitical developments and the market’s next moves.
