Why is Bitcoin price up? Ceasefire news, $425mln short liquidations & more…

Bitcoin has rallied 4.57% in the past 24 hours and was trading at $71,829 at the time of writing. The quick gains came after the announcement from President Donald Trump on Wednesday, the 8th of April, regarding the Strait of Hormuz.

The United States and Iran were “very far along” on a peace agreement, the President wrote in a post on Truth Social. The two-week ceasefire can buy time to reach a more permanent solution, which has given markets the impetus to bounce higher.

Yet, the month of March saw a consistent decline in Spot Trading Volume, observed crypto analyst Darkfost.

The analyst explained that the elevated tensions throughout March meant it was difficult for investors to position themselves with a long-term perspective.

Uncertainty led to sidelined market participants, and the spot volume reached just $69 billion on Binance for March 2026.

This was the lowest Spot Volume since September 2023. Yet, it is during times of great uncertainty that investors can be on the lookout for opportunity.

The process of uncertainty can be long-winded for BTC

Investors shouldn’t be rushing to buy Bitcoin and crypto right away, FOMOing into the ceasefire news pump.

Data showed that U.S.-based investors remained cautious. The Coinbase Premium Index was still negative after the mid-March BTC correction from $76k to $65k.

The past 24 hours saw $212 million in short liquidations for Bitcoin [BTC] alone, according to CoinGlass data.

Across the crypto market, $425 million in short positions were liquidated. This short squeeze has likely served its purpose and could be nearing an end.

Smart money was positioning itself for a retracement.

Crypto intelligence platform Alphractal showed that both Bitcoin and Ethereum [ETH] whales were more inclined towards short positions, or closing long positions.

This can trigger major volatility, especially considering that April has historically seen high volatility and liquidations.

Traders and investors should be wary of buying BTC at these levels, given the uncertainties in play.

Final Summary

• The U.S.-Iran ceasefire announcement saw the crypto market cap expand by 3.9%, liquidating $425 million in short positions in the process.
• While the bounce was a positive reaction, it masked a bearish warning hidden beneath the surface.