Tensions in the Middle East have eased following US President Donald Trump’s announcement that the ceasefire with Iran will be prolonged. Trump stated that the Iranian government is significantly destabilized, while Pakistan seeks a pause in hostilities to devise a unified proposal.

“I have therefore directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other,” he added.

This de-escalation announcement stimulated a strong reaction in the cryptocurrency market, lifting its total capital to over $2.7 trillion. Bitcoin (BTC) surpassed $78,000, with other significant coins like Ethereum (ETH), Monero (XMR), and Bitcoin Cash (BCH) posting gains ranging between 4% and 9%.

This is not an isolated instance; the crypto market has previously responded favorably to such geopolitical changes. Just earlier this month, the market turned green after the USA and Iran agreed to a two-week ceasefire.

However, this latest recovery has negatively impacted traders who took on excessive risks with high-leverage positions. Recent data indicates that liquidations for the past day totaled around $460 million, with short positions making up 70% of that amount.

Bitcoin-related liquidations reached $212 million, while Ethereum experienced $123 million in liquidations. The largest single liquidation occurred on Bitget, exceeding $7.5 million.

Total Crypto Liquidations, Source: CoinGlass

For more details on the situation, read our full article here.