The US and Iran's surprise ceasefire agreement over the weekend sent crypto markets into overdrive, triggering $246 million in short liquidations within 24 hours as traders scrambled to reposition. The 'Islamabad declaration,' signed June 14, reopens the Strait of Hormuz for 60 days, sending oil prices to a two-month low and directing capital toward crypto as one of the few risk assets open for trading while stock markets were closed. Bitcoin and other majors rallied, pushing total market cap to $2.22 trillion, up nearly 10% from the June 5 trough of $2.02 trillion.
Short sellers caught off guard
The peace deal hit at a moment when many traders were betting on continued geopolitical tension. Over $246 million in short positions were liquidated across crypto exchanges in the 24 hours after the announcement, according to data tracked by multiple platforms. The unusual weekend timing — when stock markets are closed — meant crypto became the primary venue for repositioning. Oil's slide to $80 a barrel, down more than $12 since mid-last week, added to the risk-on mood.
Worldcoin surfs the wave
Eightco Holdings disclosed it holds 283.45 million Worldcoin (WLD) tokens, equal to 8.4% of the circulating supply. The news, paired with the broader bullish sentiment, drove WLD up 20% to $0.58 over 24 hours. The token has now surged over 120% from late-May lows near $0.27. The disclosure marks one of the largest single-entity holdings in the WLD ecosystem, though Eightco didn't detail its acquisition strategy.
Why crypto got the flow
Stock markets were closed when the declaration dropped. Crypto never sleeps, so it absorbed the initial wave of capital as traders rotated out of safe havens and into risk assets. The market cap gain — from $2.02 trillion to $2.22 trillion — happened almost entirely over the weekend. Oil's decline to a two-month low reinforced the narrative that the reopening of the Strait of Hormuz eases a key supply bottleneck, which historically has been a tailwind for crypto as an alternative store of value.
The 60-day clock is ticking
The ceasefire is only temporary, and Iran has already disputed parts of the timeline and enrichment terms outlined in the declaration. The 60-day window leaves room for either a more lasting agreement or a return to brinksmanship. Traders are now watching for any follow-up statements from both governments that might signal the deal's durability. For now, the short squeeze has cleared out some leveraged bears, but the real test comes later this summer when the clock runs out.
