Bitcoin moved above $72,000 and briefly reached an intraday high of $72,865 after news of a Middle East ceasefire helped drive a relief rally across risk assets. The jump came even as regional tensions remained active, with reports of continued strikes in Iran and several Gulf states.
After first breaking through $72,000 on Tuesday evening, bitcoin mostly traded between $71,500 and $72,000 before another push sent it to the session high at around 9:15 a.m. EST. The move did not hold for long. Selling pressure followed quickly, dragging the price down to $70,839 in less than two hours. By 1:15 p.m. EST, bitcoin had recovered to the $71,500 area and was again testing the $72,000 level.
Nearly 5% daily gain lifts crypto market value
The price swing left bitcoin up nearly 5% over 24 hours, taking its market capitalization to $1.43 trillion, the highest level since March 18. Strength in bitcoin also pushed the broader crypto market higher, with total market capitalization rising to $2.51 trillion.
The report said bitcoin’s price action broadly tracked the rebound in global equities after the temporary ceasefire eased fears of a sharper regional escalation. At the same time, the geopolitical backdrop remained unsettled. While the U.S. military began following the ceasefire terms, reports indicated Iran continued to strike targets in Gulf states in response to alleged attacks on its infrastructure and Israel’s bombardment of Lebanon.
Volatility wipes out hundreds of millions in short positions
The sharp move in bitcoin fed directly into derivatives markets. Over the past 24 hours, bitcoin’s rally alone erased $254 million in short positions, up sharply from $50 million the previous day. Across the entire crypto market, liquidations totaled more than $477 million for shorts, while long positions lost $181 million.
Bitget CEO Gracy Chen said the bitcoin market is now split into two channels. One is the ETF channel, where institutional inflows continue to absorb supply and create a stabilizing base. The other is the spot and onchain market, where she sees limited breadth and weaker conviction, with older holders selling and not enough fresh retail demand coming in to support a stronger breakout.
Chen points to $68,000 as a key support level
In Chen’s view, ETF demand offers stability but does not yet provide enough force for a sustained new uptrend, leaving bitcoin likely to stay inside its current range for now. She said stronger spot demand and higher onchain activity could help bitcoin break above $75,000 and move toward $80,000. If the market fails to hold $68,000, she said downside pressure could continue, opening a move to $60,000 and then a stronger support zone around $50,000.