Bitcoin rose above $78,000 on Wednesday after renewed easing of tensions in the Middle East supported risk appetite across digital assets.
summary
- Bitcoin rose above $78,000 after news of the ceasefire eased tensions and sent traders into risk assets.
- Nearly 110,000 traders were liquidated within 24 hours, with short positions accounting for most of the losses.
- The strategy bought 34,164 BTC for $2.54 billion, which helped support momentum as institutional demand remained steady.
The move came after US President Donald Trump said the ceasefire with Iran would be extended, while market participants also reacted to Strategy’s recent Bitcoin purchase.
The broader cryptocurrency market has risen alongside Bitcoin. The total market cap rose to more than $2.7 trillion, while Ethereum, Monero, Bitcoin Cash, BNB, and Solana also recorded gains. Meanwhile, leveraged traders faced huge losses as liquidations approached $500 million over the past 24 hours.
Extending the ceasefire supports market recovery
The latest price action came on the heels of Trump’s comments regarding the conflict involving Iran. He said the ceasefire would remain in place while officials waited for a “unified proposal,” adding that the Iranian government was “dangerously divided.”
These statements helped improve sentiment in global markets. Standard & Poor’s 500 futures rose 0.5%, while Nasdaq 100 futures rose 0.6%. In the cryptocurrency space, Bitcoin advanced 2.2% over 24 hours and 4.3% over the week to trade above $78,000 during Wednesday trading.
This was not the first market reaction related to the conflict. Earlier in April, cryptocurrency prices also rose after the United States and Iran He agreed to stop Hostilities for two weeks. The recent extension has once again pushed traders towards risk assets.
Brent crude remained near $98 a barrel, while the MSCI Asia Pacific Stock Index fell 0.7% as investors continued to assess how long tensions in the region could continue. However, digital assets remained flat as traders focused on the ceasefire decision.
Bitcoin leads the gains as altcoins follow
Bitcoin traded at around $78,145 after emerging from recent headline-driven volatility. Ethereum rose 2.1% to $2,366, BNB rose 1.3% to $640, and Solana rose 1.8% to $87. Most of the top 10 coins were trading in positive territory, with only minor declines in stablecoins and TRON.
The upward move also came after the strategy revealed a new Bitcoin buy. Company Bought 34,164 Bitcoin for $2.54 billion at an average price of $74,395 per coin. This brought its total holdings to 815,061 BTC, acquired for approximately $61.6 billion at an average cost of $75,527.
With Bitcoin trading above the average entry price, the Strategy position returned to a modest unrealized profit. The company’s latest purchase was the largest since November 2024 and added another signal of corporate demand to the market.
Fund flow data also showed renewed investor interest. Currency stocks I mentioned Global cryptocurrency funds recorded inflows worth $1.4 billion last week. Bitcoin attracted $1.12 billion, while Ethereum attracted $328 million. Chainlink and Sui also recorded inflows, while Ripple and Solana saw outflows despite price gains.
Liquidations approach $500 million as short positions take a hit
The rapid market recovery caused sharp losses for traders using high leverage. Liquidations totaled approximately $460 million over the past 24 hours, with short positions making up approximately 70% of this total.
Bitcoin-related liquidations rose to $212 million, while Ethereum positions reached $123 million. The largest single liquidation occurred on Bitget and exceeded $7.5 million.
The data also showed that nearly 110,000 traders were liquidated during this period. The numbers reflect how quickly sentiment changed after the ceasefire update and Bitcoin moved above $78,000.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
