A wave of optimism swept through global markets on Monday after reports surfaced that the U.S. and Iran are exploring a 45-day ceasefire, driving risk assets higher and triggering a sharp unwind of bearish crypto bets. In the past 12 hours alone, short liquidations outpaced long positions by nearly three-to-one.
Bitcoin rallied 3% to $69,120 as traders returned from the Easter break, marking its highest level in over a week. The move caught short sellers off guard, with roughly $196 million in bearish positions wiped out over the last 24 hours.
Major altcoins joined the upswing, led by Ether, which climbed 3.7% to $2,130—its strongest daily performance in a week. Solana gained 2% to $82, XRP advanced 2.2% to $1.34, and Dogecoin rose 1.7% to $0.093. The broad-based rally pushed the total cryptocurrency market capitalization back above the $2.5 trillion mark.
The catalyst behind the move was an Axios report indicating that the U.S., Iran, and regional intermediaries are negotiating terms for a temporary ceasefire that could potentially evolve into a permanent resolution to the six-week conflict.
Liquidation data highlights just how bearish traders had become heading into the weekend. Of the $273.8 million in total liquidations across more than 81,000 traders, short positions accounted for $196.7 million, compared to $77.1 million in longs. The largest single liquidation was a $10.17 million ETH-USDT short position on Binance.
Bitcoin traded within a wide 24-hour range between $66,634 and $69,350, a swing of nearly $2,700 that amplified the squeeze on overleveraged shorts.
Sentiment data from Santiment underscored the setup for a rebound. Over the weekend, social media sentiment hit its most bearish level since the conflict began, with negative commentary outweighing positive posts by a five-to-four margin. In typical crypto fashion, extreme pessimism helped fuel a sharp counter-move.
Despite the rally, Bitcoin remains within its established five-week range tied to the geopolitical backdrop, oscillating between $65,000 and $73,000. Key resistance levels lie ahead at $71,500 and $81,200, based on Lower Band and Trader On-chain Realized Price indicators cited in prior CoinDesk analysis.
The durability of this rebound will hinge on whether ceasefire discussions translate into concrete action—or fade like previous headlines within days.
