Liquidations Surge as Bitcoin Price Pumps and Dumps on US-Iran Deal Reports

Over $140 million worth of shorts were wrecked in the past 12 hours alone.

Bitcoin broke out of the weekend slumber, surging to a 12-week peak of just under $80,000 before it was brutally rejected and driven south by roughly two grand in an hour or so.

The most obvious reason behind this rather unexpected Monday morning pump came after reports emerged that Iran and the US could be inching closer to a deal.

A New Deal?

The Kobeissi Letter cited information from Axios, which reads Iran has provided the US a new proposal for reaching a deal on the reopening of the Strait of Hormuz and ending the war through Pakistani mediators.

The known details as of press time include postponing nuclear negotiations to a later stage. US President Donald Trump is expected to hold a meeting with his top national security and foreign policy team on Monday to discuss how to move forward.

Previously, he canceled the trip of the US delegation, led by Steve Witkoff and Jared Kushner, to Pakistan shortly after the Iranian counterparties left the country without opening any talks.

The report also claimed that Trump wants to continue the US Navy blockade of the Strait of Hormuz, a step that sabotaged the previous peace talks and pushed Iran to reclose the key passage.

https://twitter.com/KobeissiLetter/status/2048593172423495858?ref_src=twsrc%5Etfw” target=”_blank

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Crypto Market Reaction

BTC’s price reacted with intense and immediate volatility after the report went live. Despite the weekend developments, which included an alleged attempt on Trump’s life, the asset had remained sideways at around $78,000.

However, it shot up to a 12-week peak of over $79,500 before it was halted and pushed to well below its starting point. Most altcoins followed suit, causing an uptick in the total value of liquidated positions, which is up to $275 million on a daily scale. The lion’s share came in the past 6 hours or so when the fluctuations transpired.