Bitcoin is up 4.57% in the last 24 hours and was trading at $71,829 at the time of writing. The rapid gains came after President Donald Trump’s announcement on Wednesday, April 8, about the Strait of Hormuz.
The United States and Iran were “very far along” on a peace deal, the president wrote in a post on Truth Social. The two-week ceasefire could buy time to reach a more permanent solution, which has given markets the impetus to bounce higher.
Yet crypto analyst Darkfost saw a consistent decline in spot trading volume in March.
The analyst explained that heightened tensions in March made it difficult for investors to position themselves with a long-term perspective.
Uncertainty led to market participants being sidelined and spot volume on Binance was just $69 billion as of March 2026.
This was the lowest spot volume since September 2023. Still, investors can look for opportunities in times of great uncertainty.
The process of uncertainty can take a long time for BTC
Investors shouldn’t rush to buy Bitcoin and crypto right away as FOMO feeds into the ceasefire news pump.
Data showed US investors remained cautious. The Coinbase Premium Index was still negative after the mid-March BTC correction from $76,000 to $65,000.
There were $212 million in short liquidations for Bitcoin in the last 24 hours [BTC] alone, according to CoinGlass data.
$425 million in short positions were liquidated on the crypto market. This short squeeze has likely served its purpose and could be nearing an end.
Smart money positioned itself for a retracement.
Crypto intelligence platform Alpharactal showed that both Bitcoin and Ethereum [ETH] whales were more likely to short positions or close long positions.
This could lead to high volatility, especially considering April has historically seen high volatility and liquidations.
Traders and investors should be wary of purchasing BTC at these levels given the uncertainties at play.
Final summary
- The announcement of the US-Iran ceasefire saw the cryptocurrency market cap grow by 3.9%, liquidating $425 million in short positions.
- While the rebound was a positive reaction, it masked a bearish warning hidden beneath the surface.