Bitcoin surged past $72,000 following a two-week ceasefire announcement between the U.S. and Iran, which also caused U.S. oil prices to drop 22% from $117 to $91 per barrel. The geopolitical de-escalation triggered a broad market rally, liquidating $425 million in short crypto positions, while analysts noted the ceasefire provided “fragile breathing room” ahead of key macroeconomic events.
Bitcoin extended its gains to a peak of $72,379 after U.S. President Donald Trump announced a conditional two-week ceasefire with Iran. The leading cryptocurrency was trading around $71,610, up 3.5% over 24 hours according to CoinGecko data.
The rally liquidated $425 million in short positions and another $170 million in long positions per CoinGlass data. Altcoins such as Zcash, LayerZero, and Ethena posted double-digit gains alongside the surge.
The ceasefire, based on a TruthSocial post by the president, requires Iran to agree to the “COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.” The agreement allows Iran and Oman to charge fees on transiting ships, with proceeds directed toward reconstruction efforts.
Critics labeled the move another example of “TACO”—”Trump Always Chickens Out”—according to a CNN analysis. This came after the president walked back earlier threats that “a whole civilization will die tonight” unless Iran reopened the vital shipping strait.
Maksym Sakharov, co-founder and CEO of on-chain banking infrastructure provider WeFi, stated the ceasefire opens the path for better global crypto adoption, especially stablecoins. Andri Fauzan Adziima, research lead at cryptocurrency exchange Bitrue, told Decrypt the pause provides “fragile breathing room after weeks of escalation, but skepticism remains high over whether it will hold beyond two weeks.”
Sentiment shifted on prediction market Myriad, where users now assign a 55% probability to Bitcoin rallying to $84,000 next. They also place an 88% chance on the average number of ships transiting the Strait of Hormuz returning above 15 before May.
Sakharov cautioned that incoming macro events, like an expected U.S. CPI hike, must be watched closely as they could impact rate cuts or economic growth. Regulatory headway was noted with the Federal Deposit Insurance Corporation approving a proposal to implement the GENIUS Act requirements.
Though the two-week pause offers relief, Bitcoin’s future path remains uncertain. It hinges on whether the ceasefire holds and how upcoming macroeconomic data unfolds.
