Trump Accuses Iran of 'Serious Violation' of Ceasefire, Impacting Crypto Markets

President Donald Trump announced Friday night that Iran agreed to an unlimited suspension of its nuclear program and reopened the Strait of Hormuz, triggering a Bitcoin rally to $78,000 that liquidated $762 million across 168,336 traders, with shorts accounting for $593 million of losses. However, Iran reversed course by Saturday evening, broadcasting that the Strait of Hormuz was again closed and under strict Iranian military control, with tanker owners reporting gunfire incidents and radio transmissions shutting the waterway. Tehran never confirmed Trump's nuclear program claims, and the geopolitical whiplash caused Bitcoin to retreat to $76,091 by Saturday. The episode demonstrated crypto markets' sensitivity to Middle East tensions, with crude oil initially dropping nearly 10% to $85.90 per barrel before the reversal.

Bitcoin Short Squeeze and Massive Liquidations

• ▪Of the $762 million in liquidations, $593 million were on the short side according to CoinGlass
• ▪Bitcoin shorts accounted for $381 million in liquidations during Friday's rally
• ▪Bitcoin climbed to $78,000 late Friday, triggering $762 million in liquidations across 168,336 traders

Market Impact and Cryptocurrency Price Movements

• ▪XRP led weekly gains at 6.4% as of the article publication
• ▪Bitcoin broke above the $76,000-$78,000 zone that has capped every rally attempt since the February 5 crash
• ▪Solana dropped 1.3% during the Saturday retreat
• ▪Ether was down just 0.2% over 24 hours during the Saturday retreat
• ▪Ether was up 5.2% on a weekly basis as of the article publication
• ▪BNB added 4.6% on a weekly basis as of the article publication
• ▪Bitcoin pulled back to $76,091 by Saturday evening hours in Asia, up just 0.8% on the day
• ▪Crude oil dropped nearly 10% to $85.90 per barrel on the initial Strait of Hormuz reopening headline

Perspective of Cryptocurrency short sellers

• ▪Cryptocurrency short sellers were caught off-guard by the sudden Bitcoin rally to $78,000 following Iran ceasefire news

Perspective of Oil tanker operators

• ▪Oil tanker operators received conflicting signals about Strait of Hormuz access within a 24-hour period from Friday to Saturday

Perspective of Cryptocurrency traders anticipating continued rally

• ▪The Saturday pullback to $76,091 suggested Bitcoin's breakout above long-standing resistance may have been a false signal rather than a sustained trend reversal
• ▪Bitcoin's breach above the $76,000-$78,000 resistance zone represented a potential end to the consolidation pattern that had persisted since the February 5 crash