Bitcoin nears $75K as $530M in shorts are liquidated

Bitcoin neared $75,000 on Tuesday as growing hopes of a U.S.-Iran diplomatic agreement lifted cryptocurrency markets and coincided with about $530 million in liquidations over 24 hours. Data from CoinGlass showed roughly 177,000 trader positions were closed, with about $425 million of the total tied to leveraged short positions in Bitcoin and Ether.

The overall crypto market capitalization climbed to about $2.6 trillion, its largest level in a month. Most of the liquidations occurred in the prior 12 hours, and CoinGlass reported around 80% of those losses were linked to short positions on Bitcoin and Ether. A user posting as “Bull Theory” on a social platform claimed a much larger figure of shorts removed and a larger boost to market value; that claim has not been independently verified.

Price swings were sharp. Bitcoin reached a four-week high just below $75,000 on Coinbase before retreating to about $74,290. Ether rose about 7.5% to $2,380, its highest level since early February and a 10-week peak on Coinbase. Market activity in derivatives markets, where traders use leverage on futures and options, forced many short positions to close when prices moved higher, accelerating buying pressure. Valerius Labs wrote that “we are not seeing a breakout. It’s a short squeeze running into overhead supply,” noting genuine buying interest typically appears above the 200-day simple moving average.

Traders also pointed to growing expectations that a negotiated settlement between the U.S. and Iran could ease regional tensions and increase investor appetite for riskier assets. Jeff Mei, chief operating officer at BTSE, attributed the rally to traders’ belief that the two sides are approaching a deal and noted Iran’s heavy dependence on oil exports and the potential impact of reduced naval tensions in the Strait of Hormuz.

The U.S. blocked the Strait of Hormuz on Monday, and President Donald Trump posted on Truth Social warning that Iranian ships approaching the blockade “will be immediately eliminated.” Other factors cited by market participants included inflows from spot crypto exchange-traded funds and buying by centralized exchanges.

Traders and analysts noted that futures and options markets can magnify moves: when many short positions are squeezed, forced buying can trigger further liquidations. Market participants warned that volatility remained elevated and that resistance levels could limit gains until clearer buying interest develops above key moving averages.