Bitcoin surged to a near one-month high just below $75,000 as optimism over a potential US-Iran deal triggered a wave of short liquidations across the crypto market.
The rally pushed total crypto market capitalisation to $2.6 trillion, with $530 million in liquidations over 24 hours, including $425 million from short positions.
“Traders believe the US and Iran are coming closer to a deal,”
Said Jeff Mei.
The move was largely driven by derivatives activity, with Bitcoin and Ether leading gains as leveraged shorts were forced to close positions, accelerating upward price momentum.
However, analysts cautioned the surge may reflect a short squeeze rather than sustained buying, with resistance near the $75,000 level triggering a pullback toward $74,000.
Broader sentiment has also been supported by easing geopolitical tensions and continued institutional inflows through crypto ETFs and exchange demand.
The rally comes as markets react to shifting US-Iran dynamics, with hopes of a diplomatic resolution boosting risk appetite across both crypto and traditional assets.
At the time of reporting, Bitcoin price was $74,275.09.