A sudden détente in the Middle East sent risk assets soaring. The United States and Iran agreed to a two-week ceasefire brokered by Pakistan, sending bitcoin up 5% to a one-month high of $72,379 and crushing crude oil prices by over 10%.
According to CoinGecko, bitcoin hit $72,379 earlier today (April 8), leading the broader crypto market higher. The CoinDesk 20 Index jumped 5% to 2,034. US equity futures also rallied — S&P 500 futures rose 1.9%, Nasdaq futures surged 2.2%, and Dow futures gained about 1.8%. In contrast, West Texas Intermediate crude plunged more than 10% to $95 a barrel, with Brent following suit.
Ceasefire Details: Trump's Ultimatum and Iran's Response
With less than two hours left on his “final ultimatum” to Iran, President Trump announced a two-week pause on bombing and attacks, provided Iran “fully, immediately and safely” reopens the Strait of Hormuz. Trump called it a “two-way ceasefire,” stating the U.S. had achieved or exceeded all military objectives and made significant progress toward a long-term peace agreement with Iran. Iran confirmed the ceasefire, saying it would halt defensive operations if attacks stop, and that the Strait of Hormuz could be safely transited for two weeks, subject to coordination with Iranian armed forces and “technical limitations.”
Bloomberg energy and commodities columnist Javier Bias noted that while Iran confirmed the two-week truce, the reopening of the Strait of Hormuz carries some uncertainty due to the mentioned “technical limitations” and required coordination with the Iranian military. Still, oil and LNG transport can resume.
Short Sellers Caught Off Guard: $598M Liquidated in 24 Hours
The conflict had weighed on risk assets for over a month, prompting traders to pile into bearish positions in the futures market. The sudden ceasefire ignited a short squeeze. Coinglass data shows total crypto derivatives liquidations reached $598 million in the past 24 hours, with over $400 million from short positions. The surge forced short sellers to cover, fueling further upside. However, analysts warn the two-week truce may not sustain a lasting bull run. Nick Ruck, research director at LVRG, said ceasefire implementation remains uncertain and conflict could escalate again; combined with unresolved macroeconomic pressures, gains could be capped once risk appetite reverses. Dominick John of Zeus Research characterized the rally as “short-term liquidity stimulus,” arguing that a sustained uptrend would require continued liquidity expansion, rate-cut expectations materializing, and structural ETF inflows.