Bitcoin jumps as Iran fears recede
Bitcoin’s price soared above $71,000 on Monday after U.S. President Donald Trump announced a five-day postponement of planned military strikes against Iranian power plants. The move came just hours after a tense weekend that saw the world’s largest cryptocurrency drop from $76,000 to below $68,500, as traders braced for potential escalation in the Middle East. Following Trump’s announcement, Bitcoin rebounded quickly, reaching an intraday high of $71,224 before settling closer to $70,000 by midday.
The sudden reversal highlights how rapidly geopolitical events can move crypto markets: within 60 minutes of the news, Bitcoin jumped by nearly 4.7%, while Ether (ETH) climbed 5% to $2,170.
This surge also marked the first time since March 19 that BTC/USD traded above $71,000. Despite the sharp recovery, Bitcoin remains down about 5% on the week—evidence of just how volatile conditions have been amid shifting headlines.
On the oil side, CoinGlass tracked $62.41 million in liquidations on the XYZ:BRENTOIL contract over the past 24 hours.
Oil tumbles, Bitcoin soars on news
The ripple effects weren’t limited to digital assets. Brent crude oil plunged from above $113 per barrel to a low of $98 before recovering to just over $105; West Texas Intermediate (WTI) crude dropped over 10% to around $88.5 before rebounding near $93. As oil prices fell sharply in response to the de-escalation signal from Washington, traders appeared to rotate into riskier assets like cryptocurrencies and equities.
On paper oil was the focus, but Bitcoin stole the spotlight.
Gold also staged a notable comeback, rising from $4,101 per ounce to as high as $4,440 before closing down just 1% on the day. Meanwhile, the U.S. dollar index (DXY) slipped to 99.3 and U.S. 10-year Treasury yields dropped by 100 basis points to 4.3%, reflecting a broad flight out of traditional safe havens and into alternative assets.
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Liquidations spike after sudden rebound
The abrupt turnaround in crypto prices triggered a cascade of forced liquidations across derivatives markets. According to decrypt.co, total liquidations reached $791 million in the last 24 hours—$425 million of which were long positions caught off guard during Bitcoin’s weekend plunge and subsequent rebound. In just one hour after Trump’s announcement, short sellers lost nearly $270 million as prices ripped higher; Bitcoin shorts alone accounted for roughly $120 million of these losses.
CoinGlass data showed that leveraged traders betting on both sides were whipsawed by volatility: on oil contracts alone (XYZ:BRENTOIL), longs lost over $61 million while shorts gave up nearly $717,000 during the same period.
Why it matters: Practical impact beyond crypto
For everyday investors and institutions alike, these moves underscore how global political tensions can instantly reshape portfolio risks and opportunities. The past weekend’s volatility drove the Fear and Greed Index into “Extreme fear” territory—a reminder that even digital assets can be rattled by real-world brinkmanship. Yet when Trump paused military action and referenced “productive conversations” about Middle East hostilities ending soon, risk appetite returned almost immediately.
Equity markets also responded: the Dow Jones Industrial Average rose by 1,000 points in premarket trading Monday as traders recalibrated expectations for both war and economic fallout. Meanwhile, prediction platforms like Myriad saw odds for Bitcoin reaching new highs jump from 41% to 49% within hours of the postponement announcement.
Markets bet on de-escalation—temporarily
Despite Monday’s relief rally in crypto and commodities alike, uncertainty lingers over whether this pause will hold or simply delay further confrontation between Washington and Tehran.
Iran’s Fars news agency reported—citing an unidentified source—that no direct talks between Iran and the United States had yet occurred regarding reopening the Strait of Hormuz or broader de-escalation steps. This leaves open questions about how long current market optimism can last if tensions flare again or if negotiations fail to materialize in coming days.
With leveraged bets unwinding at record pace and cross-market volatility surging—total crypto liquidations hit $781 million over 24 hours—it is clear that traders are bracing for more twists ahead. For now though, Bitcoin has reclaimed its position above $70,000 as investors weigh each new headline out of Washington and Tehran.
What to monitor next
Markets will watch for any updates from President Trump or the White House regarding the scheduled five-day pause on U.S. strikes against Iranian power plants; if the postponement ends without further escalation or is extended, immediate volatility in Bitcoin and oil prices is likely, but the timing of any new decision remains unclear.