As the US-Iran ceasefire deadline approaches, the entire cryptocurrency market seems to be in a risk-on mood. Bitcoin is hovering around $80.93k, but after a strong rally last week, it looks like traders are taking a wait-and-see approach for the past few days.

What’s catching attention is that the funding rate for perpetual futures has become quite negative. This means the market as a whole is leaning toward short positions, which suggests the possibility of a short squeeze occurring. As ZeroStack’s CEO also pointed out, if Bitcoin continues to rise from here, there’s a potential for a rapid acceleration due to short covering. Some traders are even predicting a move toward $125,000 within the next 30 to 60 days.

However, on-chain data shows that many active holders are in a loss position. So even if a short squeeze causes a sharp rise, there’s a high chance it will eventually be sold off. The future of the cryptocurrency market largely depends on how long the US-Iran ceasefire lasts.

Ethereum is holding an upward trend at $2.33k for the week, XRP remains steady at $1.45, Solana is at $95.10, BNB at $654, and Dogecoin at $0.11. The global stock markets are also temporarily paused, but the market direction for cryptocurrencies will likely change depending on future geopolitical risks.