Dramatic Reversal: Trump’s sudden ceasefire announcement triggered Bitcoin’s sharp recovery from $98,200 to $106,075, marking an 8% daily gain.
Massive Liquidations: Short sellers faced $495 million in liquidations as markets reversed, with 76% of losses coming from bearish positions.
Geopolitical Sensitivity: Crypto assets demonstrated extreme sensitivity to Middle East tensions, reinforcing their role as high-risk speculative instruments.
Trump announces Israel-Iran ceasefire, triggering Bitcoin’s 8% rally from $98,200 to $106,075. Crypto market sees $495M liquidations as geopolitical tensions shift dramatically within 24 hours.
EVENT OUTBREAK: TRUMP SUDDENLY ANNOUNCES CEASEFIRE, MARKET SENTIMENT REVERSES 180 DEGREES
Early this morning (Beijing time June 24), President Trump announced through social media that Israel and Iran had reached a “comprehensive ceasefire agreement”. Both sides will gradually halt military operations within the next 24 hours. This news rapidly ignited market optimism. Bitcoin’s price surged from early session lows of $98,200, reaching a peak of $106,075 with daily gains exceeding 8%.
Ethereum, Solana, and other mainstream cryptocurrencies rebounded simultaneously. The total crypto market cap recovered to $3.3 trillion, representing a 6% increase from the previous day’s low.
The dramatic turnaround of this ceasefire agreement stemmed from the Trump administration’s intensive Middle East actions in recent days. From June 22 airstrikes on Iranian nuclear facilities to hints of “regime change”, and finally achieving a ceasefire – within just 48 hours, geopolitical risks shifted from “swords drawn” to “handshakes and peace”. Market sentiment fluctuated violently as a result.
MARKET REACTION: SHORTS GET WASHED OUT, LEVERAGED PLAYERS “CAUGHT OFF GUARD”
Liquidation Wave: $495 Million Vanishes Into Thin Air
After the ceasefire news broke, crypto markets experienced massive short position closures. According to CoinGlass data, total network liquidations reached $495 million in the past 24 hours. Short positions accounted for over 76%, marking the year’s largest short squeeze event.
One exchange recorded a single ETH-USDT contract liquidation of $12.14 million. This highlighted liquidity risks under extreme market conditions.
Capital Flows: Institutional vs Retail Divergence
Despite the market’s rapid rebound, capital flows showed clear disagreement:
Institutional Side: Bitcoin spot ETFs recorded net inflows exceeding $1 billion for two consecutive weeks. This became a key force supporting price floors.
Retail Side: The Fear and Greed Index dropped to 37 (representing fear). The altcoin season index remained at a low of 14. This shows small investors still maintain a wait-and-see attitude.
This divergence suggests the current rally is driven more by algorithmic buying and short covering rather than market consensus bullishness.
TECHNICAL ANALYSIS: REVERSAL SIGNAL OR “DEAD CAT BOUNCE”?
Bitcoin: Key Resistance and Support Battle
Short-term Resistance: The $105,000-$110,000 range concentrates large trapped positions, becoming the focal point of bull-bear competition.
Core Support: The $94,000-$95,000 level is viewed by multiple institutions as an “iron bottom”. A break below could trigger panic selling.
Technical analyst Crypto Caesar points out that Bitcoin’s daily chart is forming a “head and shoulders bottom” reversal pattern. If it can hold above $105,000, it may initiate a new main uptrend. However, Bitfinex Alpha reports warn that without new capital inflows, the short term may maintain a consolidation pattern.
Ethereum: Hidden Concerns Behind Weak Recovery
Although Ethereum rebounded to $2,440, it has not yet reclaimed the key psychological level of $2,500. On-chain data shows staking yields recovered to 3.8%, but staking growth lacks momentum. Ecosystem activity shows no significant improvement.
Analysts worry that if the Pectra upgrade fails to activate developer enthusiasm as expected, ETH may face “secondary bottom” risks.
BEHIND THE SCENES: GEOPOLITICS AND CRYPTO MARKET’S “NEW NORMAL”
Re-validation of Safe Haven Logic
This event again confirms cryptocurrency’s sensitivity to geopolitical risks:
Conflict Escalation Period: Bitcoin fell below $100,000 due to liquidity squeezes, declining alongside gold and oil.
Tension Easing Period: Funds quickly returned to risk assets, with Bitcoin’s single-day rebound strength far exceeding U.S. stocks.
This “sharp fall, sharp rise” characteristic reflects that crypto assets have not fully shed their “high-risk speculative” label. However, their decentralized properties are building alternative safe haven narratives.
Long-term Impact of Policy Uncertainty
The Trump administration’s erratic diplomatic strategies have become the biggest variable for crypto markets. From tariff policies to regulatory stances, their decisions often trigger chain reactions.
Trader Eugene admits: “We have to reassess risk models after every White House statement. This greatly increases our position costs.”
FUTURE OUTLOOK: HOW LONG CAN PEACE LAST?
Despite the ceasefire agreement temporarily easing tensions, potential risks remain:
Iranian Official Denial: Tehran’s Foreign Minister claims “no substantial agreement reached with Israel”, laying groundwork for future variables.
Technical Concerns: Bitcoin derivatives market put option skew remains elevated, suggesting traders doubt medium to long-term trends.
Investment Strategy Recommendations
Short-term: Monitor the effectiveness of the $105,000 breakout. Consider partial profit-taking if resistance is met.
Long-term: Under normalized geopolitical conflicts, dollar-cost averaging plus hedging may be the better solution.
Conclusion
Within 24 hours, the crypto market used a deep V recovery to demonstrate the power of “geopolitical pricing authority”. When war and peace become footnotes on candlestick charts, investors must maintain reverence to capture opportunities within the storm’s eye.
As one veteran trader said: “In the crypto world, the biggest risk isn’t volatility – it’s thinking you can predict volatility.”
〈Geopolitical “Emergency Brake”: Crypto Market’s 24-Hour Reversal Drama〉這篇文章最早發佈於《CoinRank》。
