Crypto Rallies as U.S.-Iran Deal Signals Hormuz Reopening
Cryptocurrency markets advanced after the United States and Iran agreed to a framework extending their ceasefire for 60 days, easing concerns over a prolonged disruption to global energy supplies and boosting appetite for risk assets.
Summary:
- The U.S. and Iran agreed to a 60-day ceasefire framework.
- Crypto markets rallied as traders welcomed easing geopolitical risks.
- More than $337 million in leveraged positions were liquidated during the move.
The agreement, which is expected to be formally signed in Switzerland on Friday, could pave the way for the reopening of the Strait of Hormuz and launch a new round of negotiations over Iran’s nuclear program.
Bitcoin Leads Market Higher
Digital assets posted broad gains as investors reacted to signs of a diplomatic breakthrough in the Middle East. The total cryptocurrency market capitalization climbed to approximately $2.24 trillion.
Bitcoin traded near $65,769, gaining roughly 2.4% over 24 hours and more than 4% over the past week.
Ethereum advanced to about $1,718, while Solana outperformed many large-cap tokens with a weekly gain approaching 9%.
XRP rose nearly 3% on the day, BNB gained more than 1%, and Hyperliquid continued its strong performance among alternative cryptocurrencies. The broad-based nature of the rally suggested investors were rotating back into risk assets rather than concentrating solely on Bitcoin.
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The market response reflects growing expectations that reduced tensions in the Gulf could lower risks to global trade and energy supplies, removing a key source of uncertainty that has weighed on investor sentiment for months.
Short Sellers Squeezed as Liquidations Surge
The rally triggered significant activity in crypto derivatives markets. According to liquidation data from Coinglass, more than $337 million in leveraged positions were wiped out over the previous 24 hours.
Short sellers accounted for the majority of losses, with approximately $249 million in bearish bets liquidated compared with about $89 million in long positions. The imbalance suggests many traders were positioned for further downside and were forced to close positions as prices climbed.
Bitcoin generated the largest wave of liquidations at nearly $136 million, followed by Ethereum with more than $60 million. Several alternative cryptocurrencies also recorded elevated liquidation activity as bullish momentum accelerated throughout the market.
The largest single liquidation reportedly occurred on Binance, underscoring the scale of the move and the speed at which traders were forced to adjust positions.
Zcash Emerges as Top Performer
Among major cryptocurrencies, Zcash delivered one of the strongest performances. The privacy-focused token surged to approximately $496, gaining more than 17% in 24 hours and nearly 15% over the past week.
The sharp advance came despite increasing regulatory scrutiny of privacy-oriented digital assets globally. Trading volume in Zcash also climbed significantly, indicating strong speculative interest and heightened investor activity.
Market sentiment improved during the session but remained cautious overall. The Fear & Greed Index stood at 23, keeping the market in “Fear” territory despite the rally. Meanwhile, the Altcoin Season Index remained balanced at 50, suggesting neither Bitcoin nor alternative cryptocurrencies currently hold a decisive leadership position.
The average crypto market RSI of 59 pointed to strengthening momentum without signaling excessively overheated conditions.
Investors are now focused on Friday’s planned signing ceremony and any progress toward reopening the Strait of Hormuz. A successful implementation of the agreement would remove a major geopolitical risk from financial markets and could provide further support for cryptocurrencies, equities and other risk-sensitive assets in the weeks ahead.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
