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Sert Rally and Market Liquidations Following Trump’s Ceasefire Announcement in Bitcoin

Donald Trump’s two-week ceasefire announcement caused significant liquidations in the crypto market.
After Bitcoin’s rapid surge, market sentiment shifted, and short positions experienced record losses.

On Tuesday evening, immediately after Donald Trump confirmed via Truth Social that he had declared a two-week ceasefire with Iran, Bitcoin sharply surged and surpassed $72,700. This move caught investors holding short positions off guard.

In just a two-hour window, a total of $595 million worth of liquidations occurred in the crypto market. According to CoinGlass data, 118,489 investors suffered losses during this period. The total value of liquidated short (short) positions reached $427 million, while $168 million worth of long (long) positions were liquidated.

Market sentiment reached an extreme point, with the Fear and Greed Index remaining below 10 throughout the war. Santiment data also showed that negative content on social media outnumbered positive content. With the ceasefire, market direction changed rapidly.

As Bitcoin rose to $72,700, the price moved back into the upper range of the ongoing 65,000-73,000 dollar band since the start of the conflict. Whether this level will hold in the coming period remains uncertain.