About $150 million in short positions were wiped out across crypto markets this week after the U.S. and Iran announced a peace agreement. The sudden de-escalation caught many leveraged traders off guard, pushing Bitcoin close to $66,000 and triggering a cascade of forced buybacks.
What triggered the squeeze
The peace deal, confirmed Monday, ended months of escalating tensions between Washington and Tehran. Markets had priced in a prolonged standoff — a bet that flipped instantly when the accord was signed. Short sellers, who had positioned for a downturn, were left scrambling as Bitcoin surged roughly 8% in under 24 hours.
By the numbers
Data from major derivatives platforms show the vast majority of liquidations came from over-leveraged shorts. About $150 million in positions were closed automatically as prices broke through key resistance levels. That figure represents one of the largest single-event squeezes this quarter. Bitcoin briefly touched $65,800 before settling around $65,400.
What traders saw
The move was particularly brutal for late-positioned shorts. Many had added leverage just days before, expecting a sell-off tied to geopolitical uncertainty. Instead, the peace news acted as a circuit-breaker for risk aversion. Altcoins also rallied, though Bitcoin dominated the flow — not unusual when a macro catalyst hits.
Whether the rally holds depends on follow-through. A peace deal removes a major headwind, but the broader macro picture — inflation prints, central bank policy — remains intact. For now, the immediate concern is whether enough buying pressure exists to keep Bitcoin above $65,000. That's a level that has acted as resistance before. The next few sessions will tell if this is a new floor or just a spike.
