Bitcoin started the week with a strong rally. The reopening of the market after the holiday and relatively positive news flow from the geopolitical front increased risk appetite in crypto assets, albeit briefly. The leading cryptocurrency gained approximately 3% in the last 24 hours, rising to the $69,000 level and reaching its highest point in over a week.
Nearly $200 million in short positions liquidated in the market
This rise was driven not only by spot purchases but also by a sharp "short squeeze" effect triggered by the excessive accumulation of short positions in the market. According to JrKripto data, a total of over $254 million in liquidations occurred in the last 24 hours, with approximately $206 million of this coming from short positions. The amount of liquidation in long positions remained around $48 million. This difference indicates that the expectation of a market decline is quite high.
The largest single liquidation transaction was an ETH-USDT short position exceeding $10 million on Binance. Bitcoin's intraday price range also highlighted the extent of this squeeze. The price moved within a wide band of approximately $2,700, ranging from $66,600 to $69,300.
The rise was not limited to Bitcoin alone. Ethereum recorded its strongest daily performance of the week, rising 3.7% to reach $2,130. Solana rose 2%, while XRP gained 2.2% and Dogecoin 1.7%. This broad-based movement allowed the total cryptocurrency market capitalization to climb back above $2.5 trillion.
Possible ceasefire expectation
The main trigger for this sudden market recovery was news of a possible ceasefire agreement between the US and Iran. According to a report by Axios, the parties are holding talks on the possibility of a 45-day temporary ceasefire. This development, particularly with reduced concerns about commercial ship traffic through the Strait of Hormuz, supported demand for risky assets in the short term. However, geopolitical uncertainty has not completely disappeared. Harsh statements and potential military threats from the US are causing the market to remain cautious. Therefore, questions remain about the sustainability of the current rise. On the other hand, data from derivative markets shows that investors are still cautious. The probability of a ceasefire in the forecast markets has decreased in recent days. This is because recent statements from the field have weakened ceasefire expectations. A high-ranking Iranian official confirmed that the proposal conveyed through Pakistan is being evaluated, but emphasized that Tehran will not accept any time pressure. The official also stated that reopening the Strait of Hormuz in exchange for a temporary ceasefire is out of the question, and that it is believed the US is not ready for a permanent ceasefire. In short, the ceasefire news that triggered short-term optimism in the markets has not yet turned into a concrete agreement.
