Bitcoin rose above $78,000 on Wednesday after renewed easing in Middle East tensions supported risk appetite across digital assets.
Summary
- Bitcoin climbed above $78,000 after ceasefire news eased tension and pushed traders into risk assets.
- Roughly 110,000 traders were liquidated in 24 hours, with short positions making up most losses.
- Strategy bought 34,164 BTC for $2.54 billion, helping support momentum as institutional demand stayed firm.
The move came after US President Donald Trump said the ceasefire with Iran would be extended, while market participants also reacted to Strategy’s latest Bitcoin purchase.
The broader crypto market moved higher alongside Bitcoin. Total market value climbed above $2.7 trillion, while Ethereum, Monero, Bitcoin Cash, BNB, and Solana also posted gains. At the same time, leveraged traders faced heavy losses as liquidations neared $500 million over the past 24 hours.
Ceasefire extension supports market rebound
The latest price move followed comments from Trump on the conflict involving Iran. He said the ceasefire would remain in place as officials waited for a “unified proposal,” while adding that Iran’s government was “seriously fractured.”
Those remarks helped improve sentiment across global markets. S&P 500 futures rose 0.5%, while Nasdaq 100 futures gained 0.6%. In crypto, 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 tied to the conflict. Earlier in April, crypto prices also moved higher after the US and Iran agreed to pause hostilities for two weeks. The latest extension again pushed traders toward risk assets.
Brent crude remained near $98 a barrel, while the MSCI Asia Pacific Index slipped 0.7% as investors continued to assess how long tensions in the region could last. Even so, digital assets stayed firm as traders focused on the ceasefire decision.
Bitcoin leads gains as altcoins follow
Bitcoin traded at about $78,145 after breaking out of recent headline-driven volatility. Ether rose 2.1% to $2,366, BNB added 1.3% to $640, and Solana gained 1.8% to $87. Most of the top 10 cryptocurrencies traded in positive territory, with only stablecoins and Tron showing small declines.
The upward move also came after Strategy disclosed a fresh Bitcoin purchase. The company bought 34,164 BTC for $2.54 billion at an average price of $74,395 per coin. That pushed its total holdings to 815,061 BTC, acquired for about $61.6 billion at an average cost of $75,527.
With Bitcoin trading above that average entry price, Strategy’s position returned to a modest unrealized profit. The company’s latest purchase was its biggest since November 2024 and added another corporate demand signal to the market.
Fund flow data also showed renewed investor interest. CoinShares reported that global crypto funds recorded $1.4 billion in inflows last week. Bitcoin attracted $1.12 billion, while Ethereum brought in $328 million. Chainlink and Sui also posted inflows, while XRP and Solana saw outflows despite price gains.
Liquidations near $500 million as shorts take the hit
The fast market rebound caused sharp losses for traders using high leverage. Total liquidations reached about $460 million in the past 24 hours, with short positions making up roughly 70% of that total.
Bitcoin-related liquidations rose to $212 million, while Ether positions accounted for $123 million. The biggest single liquidation took place on Bitget and exceeded $7.5 million.
Data also showed that nearly 110,000 traders were liquidated during the period. The figures reflected how quickly sentiment changed after the ceasefire update and Bitcoin’s move above $78,000.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
