Bitcoin Tops $70,000 on Ceasefire Hopes, Then Slides as Iran Rejects Proposal
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- Bitcoin surged above $70,000 on Monday for the first time since March 25, driven by reports of a potential 45-day Iran ceasefire proposal, before pulling back to approximately $68,500 by Tuesday morning.
- Ethereum climbed as much as 5.1% on Monday, with the broader crypto market unwinding nearly $200 million in bearish bets in 24 hours, according to Coinglass data.
- President Trump extended his Iran ultimatum to Tuesday at 8:00 p.m. Eastern Time, threatening strikes on Iranian power plants and bridges if the Strait of Hormuz a critical oil shipping lane remains closed.
- Iran rejected the ceasefire proposal relayed through Pakistan, demanding sanctions relief, reconstruction commitments, and a permanent end to hostilities before any agreement.
- Oil climbed past $113 a barrel and gold rose to approximately $4,654 an ounce as investors rotated toward traditional safe havens while crypto markets remained volatile.
Bitcoin briefly crossed the $70,000 mark on Monday for the first time in nearly two weeks, riding a wave of optimism after reports emerged that regional mediators had put forward a 45-day ceasefire proposal between the United States and Iran. The original cryptocurrency rose more than 3.5%, surpassing $70,200 before paring some gains, and stood just under $70,000 as of 10:35 a.m. London time.
The rally proved short-lived. Bitcoin slipped back to approximately $68,600 by Tuesday morning in Asian trading hours after Iran reportedly rejected the proposal and demanded broader concessions.
The back-and-forth price action tracked the shifting diplomatic signals almost tick for tick. Bitcoin and ethereum showed strength on Monday after news outlets reported that Iran and the U.S. had received a ceasefire proposal from mediators, with the proposal involving a 45-day pause to the fighting and the reopening of the Strait of Hormuz though neither side had yet agreed to the terms.
That optimism lit a fire under the crypto market. Roughly $273 million of bearish bets known as short positions were unwound for cryptocurrencies in the 24 hours following the ceasefire reports, according to Coinglass data.
But the rally’s structural weakness became apparent quickly. Tehran rejected the ceasefire proposal relayed through Pakistan, demanding sanctions relief, reconstruction commitments, and a permanent end to hostilities. Markets responded with broad caution across risk assets, with oil surging past $113 a barrel as Trump threatened to target Iranian bridges and power plants by Tuesday night.
Analysts were not surprised by the reversal. “Bitcoin is no longer a reliable proxy for overall risk sentiment, and when markets opened today, the switching of shorts into equity futures and the covering of some positions caused a squeeze higher in illiquid conditions,” said Damien Loh, chief investment officer at Ericsenz Capital, noting that holidays in Europe and Asia on Monday added to the volatility amid thinner liquidity.
The broader market picture remained tense. Traders are watching a Tuesday night deadline set by President Trump for Iran to accept a deal, as his threats of severe military action and rising oil prices add to macro uncertainty already clouded by mixed U.S. economic data and unclear Federal Reserve policy signals. Institutional appetite has also stayed cautious: Bitcoin spot exchange-traded funds (ETFs) recorded a mild inflow of just $22.34 million last week, according to SoSoValue data, reflecting indecisiveness among institutional investors unwilling to increase exposure amid the prevailing uncertainty.
Market Snapshot (as of Tuesday, April 7, 2026 Asian trading hours)
Bitcoin (BTC): ~$68,500–$68,957
Ethereum (ETH): ~$2,115
Oil (Brent crude): above $113 per barrel
Gold: ~$4,654 per ounce
Bitcoin all-time high (confirmed): $126,198.07 October 6, 2025 Bitcoin 2026 low (confirmed): ~$65,834
