Bitcoin (BTC) climbed 4.3% to $77,541 by Wednesday morning after President Trump’s extension of a ceasefire with Iran and a multi-billion dollar purchase by Strategy triggered a cascade of short liquidations.
The sharp price move forced the closure of $249.36 million in short positions over the past 24 hours, representing approximately 65% of the $386.13 million in total liquidations across the crypto market, according to data from Coinglass. The asymmetric liquidations suggest bearish traders were caught offside by the sudden improvement in geopolitical sentiment, which had been weighing on risk assets. Bitcoin alone accounted for $167.08 million of the liquidations.
Fueling the rally, business intelligence firm Strategy disclosed it had purchased 34,164 bitcoins for $2.54 billion, bringing its total holdings to 815,061 BTC. The acquisition makes Strategy the largest corporate holder of Bitcoin, surpassing BlackRock’s iShares Bitcoin Trust (IBIT). The move coincided with a strong week for spot ETFs, which saw nearly $1.9 billion in net inflows, the best five-day stretch since early February.
The rally reinforces Bitcoin’s emerging narrative as a hedge against geopolitical turmoil, holding its value while traditional markets like South Korea's Kospi have seen higher volatility due to oil price swings. While President Trump extended the ceasefire indefinitely, the ongoing US naval blockade of the Strait of Hormuz keeps energy markets on edge and provides a persistent tailwind for assets perceived as hedges. For Bitcoin to sustain its momentum, analysts are watching for a clean break above the $80,000 resistance level.
The price is now holding firmly above the realized price for short-term holders, a key support level around $69,400 where recent buyers are in profit, reducing the risk of a liquidation cascade to the downside. Further supporting the bullish case, Bitcoin's Coinbase premium has remained positive for 14 consecutive days, signaling sustained buying pressure from US investors.
This article is for informational purposes only and does not constitute investment advice.
