Bitcoin reclaims $70K as ceasefire hopes lift crypto markets
Bitcoin climbed to a session high of $70,275 on 6 April, restoring its market capitalisation above $1.4 trillion.
The broader cryptocurrency market followed the move, rising to an estimated $2.46 trillion in total value.
The rally came as reports emerged of a possible 45-day ceasefire in the Middle East, easing investor fears.
Market sentiment shifted after diplomatic efforts aimed to prevent further escalation following recent military tensions.
Bitcoin’s price increase of around 4% marked its first break above the $68,000 resistance level since early April.
Earlier market weakness had been triggered by the reported downing of a United States aircraft in southern Iran.
A change in strategy from Washington also influenced markets after a missing US pilot was successfully rescued.
The United States delayed planned strikes on Iranian infrastructure, signalling a softer stance to support negotiations.
This move was widely viewed as an attempt to open diplomatic channels through Pakistan-led discussions.
Oil markets reacted sharply, with West Texas Intermediate crude falling from $112.24 to $109 per barrel.
Prices later rebounded above $110 after Iran rejected the latest proposal from the United States.
On-chain data showed Bitcoin initially consolidating around $67,400 before gaining strong upward momentum.
The price surged to $69,300 within two hours before stabilising briefly in a sideways pattern.
A second upward move then pushed Bitcoin to its peak of $70,275 at approximately 11:15 a.m. EST.
The rapid price action triggered significant liquidations across leveraged positions in the market.
Total liquidations reached about $325 million over 24 hours, highlighting the intensity of the move.
Short positions accounted for the majority, with over $274 million liquidated during the rally.
Bitcoin short traders alone saw losses of around $120 million as prices moved against bearish bets.
Long positions were also affected, contributing approximately $51 million to the liquidation total.
Altcoins joined the rally, with the total altcoin market capitalisation surpassing $1.1 trillion.
Ethereum led large-cap gains, rising from $2,052 to a peak of $2,165 during the session.
Ether maintained a daily increase of roughly 5% despite a slight pullback from its intraday high.
Cardano gained 6.5% while Chainlink advanced 6.2%, reflecting broader market strength.
Other tokens including HYPE and XRP also posted gains of 4.6% and 4% respectively.
The recovery marked the first strong start to a trading week for crypto markets since 23 March.
Despite the rally, uncertainty remains as geopolitical tensions continue to influence investor behaviour.
Analysts warned that the situation could deteriorate if diplomatic efforts fail to produce a breakthrough.
A renewed escalation could push investors back towards traditional safe-haven assets.
This risk may limit the chances of a sustained cryptocurrency rally in the second quarter of the year.
At the time of reporting, Bitcoin price was $69,642.68.