Bitcoin broke above $72,000 on Thursday morning for the first time since March 18, with the cryptocurrency reaching an intraday high of $72,865 before a wave of selling pressure pulled it back toward $71,500. The move represented a five percent gain in 24 hours and lifted the total cryptocurrency market capitalisation to $2.51 trillion, its strongest reading in several weeks.
The catalyst was the same one driving equities: the ceasefire announced by President Trump less than two hours before his 8 p.m. Tuesday deadline for Iran to reopen the Strait of Hormuz. Bitcoin had been trading in a narrow $65,000 to $73,000 war range for weeks, with upside persistently capped by oil-driven inflation fears and investor preference for safer assets during the escalatory phase.
The short squeeze component of the rally was significant. According to CoinGlass data, $254 million in bearish bitcoin short positions were wiped out in 24 hours, the largest single-day short liquidation since March 4. Across the broader crypto derivatives market, the total figure reached nearly $600 million in forced liquidations, the majority from shorts. This kind of mechanical unwinding amplifies price moves well beyond what spot demand alone would generate.
Ethereum had the stronger percentage gain, rising approximately 6 to 7 percent to above $2,200, its highest level since March 18. Solana, XRP and a range of altcoins all posted moves of 5 percent or more. The CoinDesk 20 index, a measure of broader crypto market performance, outpaced Bitcoin’s gain, which is a typical pattern when sentiment shifts from risk-off to risk-on.
Crypto-related stocks also responded sharply. Circle and Galaxy Digital advanced more than 7 percent in premarket trading. Robinhood rose 8 percent. Coinbase gained 5 percent. Strategy and Bitmine Immersion Technologies both climbed 6 percent or more. These companies serve as leveraged proxies for crypto sentiment in traditional equity markets, and their moves reflect how quickly institutional positioning can shift when macro conditions change.
Morgan Stanley’s Bitcoin ETF, MSBT, debuted on NYSE Arca on Wednesday under its ticker, coinciding with the ceasefire rally and providing additional institutional access to Bitcoin exposure through a familiar product structure. The ETF’s 0.14 percent annual fee positions it competitively within the growing universe of institutional Bitcoin products.
Analysts remain cautious about the sustainability of the move. Bitfinex margin long positions remain elevated at above 80,000 BTC, near multi-year highs, which historically functions as a contrarian indicator. The physical situation in the Strait of Hormuz remains complicated, with Iran continuing strikes on Gulf states after the ceasefire announcement and the Hormuz corridor not yet operating freely.
Gracy Chen, one analyst commenting on the outlook, offered a clear framework. “With stronger spot demand in place and higher onchain activity, bitcoin may finally get enough strength to break above $75,000 and move toward $80,000,” she said. “On the flip side, if the market fails to hold $68,000, downside pressure may persist, opening the way to $60,000 first.”
