Crypto Markets Surge as US-Iran Ceasefire Triggers Short Squeeze

Crypto markets rallied sharply on Wednesday as a surprise two-week ceasefire between the U.S. and Iran sent Bitcoin to its highest level since mid-March.

Bitcoin is changing hands at $71,638, up 4.3% over the past 24 hours, according to CoinGecko. Ethereum climbed 6% to $2,220, while the total crypto market capitalization rose nearly 4% to $2.51 trillion.

Ceasefire Sparks Short Squeeze

The rally kicked off on Tuesday evening after President Trump announced a conditional two-week ceasefire with Iran, agreeing to suspend military operations for two weeks pending further negotiations. Pakistan’s Prime Minister Shehbaz Sharif brokered the deal, with formal peace talks scheduled to begin Friday in Islamabad.

CoinGlass data showed approximately $654 million in crypto futures positions were liquidated over 24 hours, with bearish short bets accounting for roughly $470 million of the total.

The Crypto Fear and Greed Index recovered to 17, up from a low of 9 earlier in the week, but it remains deep in “extreme fear” territory.

Oil markets moved sharply in the opposite direction. WTI crude dropped to roughly $94 per barrel from Tuesday’s highs above $112, as the ceasefire raised hopes that the Strait of Hormuz would reopen to tanker traffic.

Altcoins Outperform

Altcoins broadly outpaced Bitcoin on the day. Zcash (ZEC) led the charge, surging 23% to $332.

AI-sector tokens also posted strong gains: Render climbed 8% to $2.04, Bittensor’s TAO rose 7% to $332, and NEAR Protocol gained 8% to $1.34. Internet Computer climbed 9% to $2.50.

Among large caps, Avalanche gained 6.5% to $9.19, Sui rose 6% to $0.92, Solana added 5% to $84, and XRP gained 4% to $1.35.

Morgan Stanley Launches Bitcoin ETF

Morgan Stanley’s spot Bitcoin ETF began trading on NYSE Arca on Wednesday under the ticker MSBT, making the bank the first major U.S. institution to issue a spot Bitcoin ETF under its own name.

The fund carries a 0.14% annual fee, undercutting BlackRock’s IBIT at 0.25% and every other spot Bitcoin ETF currently on the market. Coinbase provides BTC custody, while BNY Mellon handles cash custody and administration.

The debut comes on the heels of strong demand for existing ETFs.SoSoValue data showed U.S. spot Bitcoin ETFs pulled in $471 million in net inflows on April 6, the largest single-day intake since late February. Spot Ethereum ETFs attracted $120 million, reversing prior outflows.

Looking Ahead

Despite the sharp bounce, Bitcoin remains trapped in a multi-month range, trading between support at $62,000 and resistance at $75,000 since early February, a range defined largely by the geopolitical overhang from the Iran conflict.

Whether the rally continues depends on the ceasefire’s durability. Iran confirmed the two-week pause but cautioned that reopening the Strait of Hormuz faces “technical limitations” and requires coordination with its military. The country’s Supreme National Security Council stressed the agreement does not imply an end to the broader conflict.