A fragile ceasefire between the United States and Iran has eased bearish sentiment in crypto markets, helping push Bitcoin above $70,000, according to a report from Bybit and Block Scholes.
The rally followed news of a conditional two-week truce and the potential reopening of the Strait of Hormuz, reducing immediate geopolitical risk and supporting broader gains across digital assets.
“Should this pause in the war shatter abruptly, risk assets are bound to give up much of their recent gains,”
Said Bybit head of derivatives research, Shunyet Jan Tan.
Derivatives data showed roughly $56 million in short positions were liquidated on Bitcoin perpetual contracts, while rising open interest signalled traders were adding fresh exposure rather than simply closing bearish bets.
Funding rates remained stable despite the price increase, suggesting a more measured approach to risk-taking rather than aggressive bullish positioning among market participants.
Options markets also reflected caution, with demand for downside protection easing but not fully reversing, indicating investors are still hedging against potential volatility.
The report concluded that while crypto has led a relief rally, the durability of gains will depend on whether the ceasefire holds and how geopolitical risks feed into inflation and global monetary policy.
At the time of reporting, Bitcoin price was $71,787.35.