Bitcoin saw intense two-way volatility on Monday, climbing from $67,500 to $71,200 before retreating to around $70,000, as traders reacted to conflicting signals on U.S.-Iran tensions.
The move higher followed a statement from U.S. President Donald Trump, who said he had ordered a five-day postponement of planned strikes on Iranian power infrastructure, citing “very good and productive conversations.” The announcement quickly lifted crypto markets.
But the rally proved short-lived. Fars News Agency reported that no talks had taken place, rejecting Trump’s claims and suggesting the U.S. backed off after threats of retaliation targeting energy facilities across West Asia. Bitcoin dropped roughly $1,200 within minutes of the headline.
The rapid reversal triggered a wave of liquidations. Data from CoinGlass showed more than $415 million in leveraged positions were wiped out in just four hours, with $280 million in short liquidations and $135 million in longs—pointing to an initial market bias toward escalation.
Bitcoin accounted for approximately $140 million in liquidations, while ether saw about $120 million. On Hyperliquid, Brent oil contracts recorded $64 million in liquidations, mostly from long positions. Tokenized gold and silver posted losses of $20.9 million and $19.8 million, respectively.
Oil markets were particularly one-sided, with traders largely positioned for an escalation following Trump’s earlier ultimatum. The unexpected delay forced a sharp unwind in bullish bets.
Earlier in the session, Bitcoin had traded steadily between $67,500 and $68,500 during Asia hours. Prices then surged nearly $3,700 within an hour on Trump’s announcement before paring gains after Iran’s denial.
By Monday evening, Bitcoin was hovering near $70,000, up around 2.3% on the day, though still within a range shaped by fast-moving, headline-driven swings.
The episode reinforces a trend highlighted by Binance data: when derivatives activity significantly outweighs spot trading, markets become more sensitive to news, amplifying moves through liquidation cascades. Shorts are squeezed on bullish developments, while longs are caught off guard when sentiment flips.
Despite relatively modest net gains, the session inflicted significant losses on leveraged traders.
