Hope For Iran Deal Sparks Risk-On Rally, Bitcoin Nears $75K

A wave of forced liquidations swept through crypto markets on Tuesday as traders who had bet against Bitcoin and Ether were caught off guard by a sharp price surge tied to hopes of a US-Iran agreement.

Around 80% of the $530 million in total liquidations over 24 hours — roughly $425 million — came from leveraged short positions in the two largest cryptocurrencies.

Bitcoin touched just under $75,000 on CoinMarketCap, a level not seen in nearly a month, before running into heavy resistance and retreating to about $74,655. Ether made an even bigger move, climbing 7% to reach $2,378 — its highest point since early February.

Geopolitical Hopes Fuel The Move

The rally came as markets began pricing in the possibility of a negotiated end to weeks of tension between Washington and Tehran. Jeff Mei, chief operating officer at crypto exchange BTSE, said traders believe the two sides are drawing closer to an agreement.

Iran’s oil exports are central to its economy, and a US blockade of the Strait of Hormuz shipping lane could put severe pressure on the country to come to the table.

“Now, it appears that Iran is frantically looking to broker a deal, and stock and crypto markets are rallying as a response,” Mei said.

CoinGlass reports liquidations across leveraged short BTC and ETH positions.

US President Donald Trump confirmed Monday that a military blockade had begun. He threatened to eliminate any Iranian vessels that come near. Trump also told reporters Iran wants to reach a deal, but his administration will not sign anything that allows Tehran to pursue nuclear weapons.