Bitcoin Approaches $75,000 as Geopolitical Thaw Triggers Massive Short Squeeze

Bitcoin nearly touched the $75,000 mark on Tuesday, driven by a combination of geopolitical optimism and a violent short squeeze in the derivatives market. The rally follows a period of intense volatility sparked by a US military blockade of the Strait of Hormuz, with investors now betting that the Trump administration and Tehran are nearing a deal to end the conflict. According to data from CoinGlass, approximately $530 million in trader positions were liquidated over a 24-hour period. The vast majority of this activity—roughly $425 million—consisted of leveraged short positions in Bitcoin and Ether. Ether experienced a more pronounced daily move, climbing 7.5% to reach $2,380, its highest valuation since early February. Despite the upward momentum, some market analysts suggest the move is a technical squeeze rather than a fundamental breakout. Bitcoin faced heavy resistance near the $75,000 level on Coinbase, subsequently retreating to $74,290. Critics note that sustainable buying pressure typically emerges above the 200-day simple moving average rather than significantly below it. Beyond geopolitical sentiment, the rally is being supported by institutional inflows through spot crypto exchange-traded funds and accumulation by centralized exchanges. However, the overarching market mood remains tied to the outcome of the US-Iran standoff, as a continued blockade of vital shipping lanes would pose a severe risk to global economic stability.