Bitcoin surged to a four-week high just below $75,000 on Tuesday, driven by hopes of a deal between the Trump administration and Iran that lifted sentiment across risk assets.
The broader crypto market climbed to a total value of $2.6 trillion, its highest in a month, with 177,000 traders liquidated for a combined $530 million over 24 hours, according to CoinGlass.
Of that total, 80% — roughly $425 million — were leveraged short positions in Bitcoin and Ether.
Short squeeze or real demand?
Analyst “Bull Theory” noted on X that over $300 billion in crypto shorts were liquidated in just a few hours, adding more than $100 billion to the total crypto market cap.
Not everyone is convinced the move signals a genuine trend reversal.
Valerius Labs cautioned:
“This isn’t a breakout. It’s a short squeeze running into overhead supply. Real buyers show up above the 200 SMA, not 15% below it.”
Bitcoin was rejected at $75,000 resistance and had pulled back to around $74,290 at the time of writing.
Iran deal hopes fuel the rally
Jeff Mei, chief operating officer at BTSE, told Cointelegraph that markets are rallying largely because traders believe the US and Iran are moving closer to a deal.
Iran’s economy depends heavily on oil exports, and a US blockade of the Strait of Hormuz could prove devastating.
Mei said:
“Now, it appears that Iran is frantically looking to broker a deal, and stock and crypto markets are rallying as a response.”
A US military blockade began Monday, with Trump threatening to eliminate any Iranian ships that approach.
Trump also told reporters that Iran wants to make a deal, but his administration will not agree to any arrangement that allows Tehran to possess a nuclear weapon.
Other drivers behind the move
Beyond geopolitics, analysts also pointed to spot Bitcoin ETF inflows and centralized exchange buying as additional tailwinds supporting the price recovery.
