US-Iran Ceasefire Sparks $654M Crypto Short Squeeze, Bitcoin Surges Over 4%

Crypto markets surged as a surprise two-week ceasefire between the U.S. and Iran triggered a massive short squeeze.

Bitcoin jumped to $71,638, up 4.3% over 24 hours, while Ethereum climbed 6% to $2,220.

CoinDesk

CoinGlass data showed approximately $654 million in crypto futures positions liquidated over 24 hours.

The rally kicked off after President Trump announced a conditional two-week ceasefire, brokered by Pakistan's Prime Minister Shehbaz Sharif.

WTI crude dropped to roughly $94 per barrel from highs above $112.

Morgan Stanley became the first major U.S. institution to issue a spot Bitcoin ETF under its own name.

The fund launched with a 0.14% annual fee, undercutting BlackRock's IBIT at 0.25%.

CoinDesk

The fund drew $34 million in day-one inflows and traded more than 1.6 million shares.

Coinbase provides BTC custody, while BNY Mellon handles cash custody and administration.

The ETF debut helped Bitcoin weather a pullback after the initial rally.

The rally was driven by a combination of macro factors and market structure rather than any single catalyst.

The ceasefire lowered oil prices, which had nearly doubled since January to $112.41 per barrel.

Bitcoin volatility dropped below 46, its lowest level in two months.

The BTC-Nasdaq correlation stood at 85%.

Whale accumulation played a role, with Bitcoin wallets holding more than 10,000 BTC seeing inflows.

The ceasefire was conditional and the broader conflict was not resolved.

Iran's Supreme National Security Council stressed the agreement does not imply an end to the broader conflict.

Cryptonews.net

The Strait of Hormuz reopening faced technical limitations.

JPMorgan CEO Jamie Dimon warned a ceasefire does not equate to an end to inflation.

Bitcoin's year-to-date performance remained down about 24% in 2026.