Bitcoin climbed to its highest level in more than a month Monday as fears of a US military strike on Iran’s main oil export terminal sent traders fleeing stocks and pouring money into crypto.
Price action and liquidations
- The market saw a blistering move: Bitcoin jumped from roughly $72,400 to $74,320 in under 30 minutes, a surge that triggered a sharp short squeeze and wiped out about $113 million in short positions within an hour.
- CoinGlass data shows roughly 94,612 traders were liquidated over the last 24 hours, with total liquidations of about $385.48 million. Short sellers forced to buy back positions amplified the upward momentum.
- By early afternoon Bitcoin was trading near $73,900, up roughly 2.7% on the day.
What triggered the move
- The spike came amid reports that US President Donald Trump is urging allies, including Britain and Japan, to help reopen the Strait of Hormuz, which Iran has reportedly blocked.
- There were also reports Trump is weighing a military seizure of Kharg Island — the key terminal that handles roughly 90% of Iran’s crude oil exports — a scenario that rattled energy markets and pushed oil prices higher.
Macro context: crypto as a refuge
- Since the US-Iran hostilities intensified on February 28, equities have given back trillions in value, while the crypto market has largely moved the other way. The total digital-asset market cap has expanded by more than $310 billion in that period, and Bitcoin is up over 15% from its post-strike lows. By comparison, gold has only posted modest gains.
- Traders and investors have been reallocating capital into assets perceived as outside the traditional financial system as oil-supply fears and inflation worries mount.
Structural drivers and caveats
- The rally isn’t explained by headlines alone. Continued inflows into US spot Bitcoin ETFs have provided a steady, less volatile bid beneath headline-driven spikes, and optimism around pending crypto legislation helped sentiment going into Monday’s open.
- That said, the outlook is fragile. A de-escalation of geopolitical tension could quickly remove the demand boost. With leveraged buyers now positioned near recent highs, a rapid reversal could be painful — just as a short squeeze intensified the move higher.
Bottom line: geopolitical shock + ETF inflows = outsized short-term gains for Bitcoin, but elevated risk of a sharp pullback if tensions cool or leverage unwinds.
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