On Tuesday night, right after former President Trump announced a two-week ceasefire with Iran, Bitcoin surged sharply.

Even though the market had been in a bearish mood, this news instantly changed the flow of the market.

The price jumped to $72,700, resulting in liquidations totaling $580 million within just 12 hours.
Notably, losses on short positions were prominent, with approximately $8M being liquidated.
This appears to be the most intense short squeeze since the start of the war.

What’s interesting is how extreme the sentiment indicators were beforehand.
The fear index had fallen to 8, and overwhelmingly bearish posts dominated social media.
This liquidation scale reflects how heavily traders had bet on a decline.

The largest single liquidation was a BTC-USDT short on a major exchange, worth $11.79 million, but Ethereum and Solana were also affected.
Crude oil futures dropped over 10%, with $30.3 million in liquidations.

Bitcoin had been trading in a range of $65,000 to $73,000 during the war, but the recent surge pushed it to the upper limit.
Whether it will break through this level or fall back again depends on how the two-week ceasefire unfolds.
Seeing the entire market react so strongly to a single news event shows how skewed the positioning was.