Bitcoin rallies past $78K after extended end of fire, liquidation jumps

Bitcoin rose above $78,000 on Wednesday after renewed Middle East tensions supported risk appetite across the digital asset.

The move comes after US President Donald Trump said the nuclear deal with Iran would be extended, while market participants also reacted to Strategy Bitcoin’s recent purchases.

The broader crypto market has moved higher alongside Bitcoin. The total market value increased to more than $2.7 trillion, while Ethereum, Monero, Bitcoin Cash, BNB, and Solana also posted gains. At the same time, the power traders faced heavy losses as the closing of funds was close to $500 million in the last 24 hours.

The Ceasefire extension supports market returns

The latest price move followed Trump’s comments on the conflict involving Iran. He said the ceasefire would continue as officials waited for a “combined proposal,” adding that Iran’s government was “very fragmented.”

Those comments helped boost sentiment across global markets. S&P 500 futures rose 0.5%, while Nasdaq 100 futures gained 0.6%. In crypto, Bitcoin advanced 2.2% in 24 hours and 4.3% during the week to trade above $78,000 during trading on Wednesday.

This was not the first market reaction related to the conflict. In early April, crypto prices also surged after the US and Iran agreed to a two-week ceasefire. The recent expansion has also pushed traders into riskier assets.

Brent crude remained near $98 a barrel, while the MSCI Asia Pacific Index fell 0.7% as investors continued to assess how long tensions in the region could last. Still, digital assets remained firm as traders focused on the ceasefire decision.

Bitcoin leads gains as altcoins follow

Bitcoin traded around $78,145 after breaking out of recent headline-driven volatility. Ether rose by 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 a positive position, with only stablecoins and Tron showing a slight decline.

The increase came after Strategy revealed a new purchase of Bitcoin. The company bought 34,164 BTC for $2.54 billion with an estimated value of 74,395 coins. That pushed its total holdings to 815,061 BTC, which was raised to about $61.6 billion at an estimated value of $75,527.

With Bitcoin trading above that average entry price, the Strategy’s position reverted to a small unrealized profit. The company’s latest purchase was the largest since November 2024 and adds another signal of business demand 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 pulled in $1.12 billion, while Ethereum brought in $328 million. Chainlink and Sui also posted inflows, while XRP and Solana saw outflows despite price gains.

Closes close to $500 million as shorts become popular

The rapid market recovery resulted in large losses for high-powered traders. Total liquidation reached about $460 million in the last 24 hours, with short positions making up about 70% of that amount.

Liquidation related to Bitcoin rose to $212 million, while Ether positions cost $123 million. One major liquidation happened on Bitget and exceeded $7.5 million.

The data also showed that about 110,000 traders were eliminated during this period. The statistics showed how quickly the sentiment changed after the update of the end of the war and the movement of Bitcoin above $78,000.