Bitcoin has increased by 4.57% in the last 24 hours and was trading at $71,829 at the time of writing. The rapid gains follow President Donald Trump’s statement on the Strait of Hormuz on Wednesday, April 8.
The US and Iran have “gone too far” on the peace deal, the president wrote in a post on Truth Social. A two-week ceasefire could buy time to reach a more permanent solution, giving markets greater momentum for recovery.
However, crypto analyst Darkfost observed a consistent decline in Spot Trading Volume in March.
The analyst explained: increased tension This meant that throughout March it was difficult for investors to position themselves with a long-term perspective.
Uncertainty caused market participants to step aside, and spot volume only reached $69 billion on Binance in March 2026.
This was the lowest Spot Volume since September 2023. However, the periods when investors can look for opportunities are the periods when uncertainty is great.
The uncertainty period for BTC may last a long time
Investors should not rush to buy Bitcoin and crypto immediately and get FOMO into the ceasefire news.
Data showed that US-based investors were cautious. The Coinbase Premium Index was still negative following BTC’s correction from $76K to $65K in mid-March.
Short liquidations of $212 million were seen in the last 24 hours Bitcoin (BTC) Alone, according to CoinGlass data.
Short positions worth $425 million in the crypto market were liquidated. This short squeeze has likely served its purpose and may be nearing its end.
The smart money was positioning itself for a pullback.
Crypto intelligence platform Alphractal analyzes both Bitcoin and Ethereum (ETH) whales were more likely to short positions or close long positions.
This could trigger major volatility, especially given that April sees historically high volatility and liquidations.
Traders and investors should be cautious about purchasing BTC at these levels given the current uncertainties.
Final Summary
- The US-Iran ceasefire announcement saw the crypto market expand by 3.9%, with short positions worth $425 million liquidated in the process.
- While this bounce was a positive reaction, it masked a bearish warning hidden beneath the surface.
