Why Has Crypto Risen Today? April 08

TLDR

• Bitcoin climbed 4.8% to approximately $71,825, marking its highest valuation since mid-March
• A 14-day truce between the U.S. and Iran sparked a widespread rally in the cryptocurrency market
• Ethereum, XRP, Solana, and Dogecoin all recorded increases ranging from 4.4% to 7%
• Crude oil prices fell by over 10%, with West Texas Intermediate dropping to roughly $95 per barrel
• Approximately $600 million in leveraged crypto futures were liquidated, with the majority stemming from short positions

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(SeaPRwire) –   Bitcoin experienced a sharp increase on Wednesday following the agreement between the U.S. and Iran on a 14-day ceasefire, alleviating tensions that had been pressuring risk assets for more than a month.

Early Wednesday, Bitcoin climbed 4.8% to approximately $71,825. CoinDesk data indicates it reached a peak of $72,699 at one point, marking its highest point since mid-March.

The ceasefire was announced by President Donald Trump on Truth Social just before the 8 p.m. ET deadline on Tuesday evening. In his post, Trump stated he agreed to “suspend the bombing and attack of Iran for a period of two weeks,” citing the achievement of military objectives and progress toward a lasting peace agreement.

Trump Halts Iran Strikes for Two Weeks Amid Ceasefire Push

U.S. President Donald Trump said on Truth Social that, following discussions with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, and conditional upon Iran’s agreement to the immediate, full, and… pic.twitter.com/npInV48tUR

— Wu Blockchain (@WuBlockchain) April 7, 2026

Iran confirmed the ceasefire shortly thereafter. The nation stated that its armed forces would “cease their defensive operations” provided attacks on Iran cease. Additionally, Iran noted that oil tankers could safely navigate the Strait of Hormuz, while acknowledging some “technical limitations” and the necessity of military coordination.

Oil Prices Drop Sharply

Oil markets responded swiftly. West Texas Intermediate crude dropped by over 10% to approximately $95 a barrel, with Brent crude experiencing a comparable decline. For weeks, escalating oil prices had fueled inflation fears and exerted pressure on risk assets, including cryptocurrencies.

U.S. stock futures also saw gains, with the S&P 500 rising 1.9%, Nasdaq futures up 2.2%, and Dow Jones futures increasing by approximately 1.8%.

The wider cryptocurrency market followed Bitcoin’s lead. The CoinDesk 20 Index increased by 5% to reach 2,034 points.

Ethereum recorded a 7% gain, XRP rose by 5.5%, Solana climbed 6.5%, and Dogecoin increased by 4.4%.

Short Sellers Hit Hard

The sudden price surge triggered nearly $600 million in leveraged crypto futures liquidations. Over $400 million of this total originated from short positions, involving traders who had wagered on price declines.

This forced buying from short sellers can generate additional upward momentum for prices, a phenomenon known as a short squeeze.

Prior to the ceasefire, traders had been accumulating bearish positions in crypto futures. The ongoing conflict had restricted Bitcoin’s upside potential even as other markets began to move.

Over the last month, the Iran conflict had generated persistent uncertainty. During this time, Bitcoin largely traded sideways, unable to advance as oil prices rallied and inflation concerns intensified.

With the ceasefire now established, these headwinds dissipated rapidly. Iran’s confirmation that the Strait of Hormuz could reopen to oil and LNG tankers helped calm energy markets, despite the caveats mentioned.

The ceasefire is scheduled to last for two weeks while negotiations for a permanent agreement continue.