Trump's Peace Pipe Dreams Send Short Sellers Packing as Crypto Surges

The crypto market continued its upward climb for the second day straight, adding 2.1% to its total value and hitting $2.45 trillion by Tuesday. It seems even digital assets can't resist the allure of a good old-fashioned geopolitical soap opera.

Bitcoin (BTC) jumped 2.4% to flirt with $69,000, its highest in six days, while Ethereum (ETH) hopped 4.2% to reclaim its throne above $2,100. The usual suspects—$BNB, $XRP, Solana (SOL), and Dogecoin (DOGE)—each chipped in with gains of 1-3%, proving once again that crypto loves a good group rally.

The day’s top performers were Algorand (ALGO) with a whopping 20.5% gain, Stable (STABLE) at +16%, and Zcash (ZEC) rounding out the podium with 8%. It’s almost as if the market decided to throw a party and everyone got an invite—except the shorts, of course.

Risk-On Mode Activated as Traders Await Trump's Iran Announcement

The market recovery coincides with traders eagerly awaiting President Donald Trump’s big update on U.S.-Iran tensions, scheduled for 9 PM ET. Rumors are swirling that Trump might be considering wrapping up the Middle East conflict, even if the Strait of Hormuz remains closed. Because nothing says "peace" like a logistical bottleneck.

The blockade has sent oil prices soaring to multi-year highs, sending investors scrambling for safe havens like gold and U.S. equities. But according to a Wall Street Journal report, countries like the UAE and Saudi Arabia are pushing the U.S. to keep fighting to reopen the strait. Because who doesn’t love a good geopolitical tug-of-war?

Iran, meanwhile, has made it clear they’ll only end hostilities if certain conditions are met, including full compensation for war damages. Because apparently peace comes with a price tag.

Trump’s speech has become the crypto world’s equivalent of a cliffhanger episode. Traders seem to be betting on a potential peace scenario, and the energy markets are already reacting. West Texas Intermediate (WTI) crude and Brent both dropped 4%, dipping below $100. Because when Trump speaks, even barrels of oil listen.

Short Squeeze Adds Rocket Fuel to the Rally

The crypto rally didn’t just lift spirits—it also triggered a classic short squeeze. Data from CoinGlass reveals over $200 million in short positions got liquidated across leveraged markets in the past 24 hours. If resistance levels break, this could keep the bullish momentum alive. Because nothing sends shorts running like a good old-fashioned rug pull.

ETF flows also played their part. Spot Bitcoin ETFs pulled in $117 million in net inflows, marking their second consecutive day of gains. Ethereum ETFs added another $31 million to the pot. It’s almost as if ETFs are the crypto market’s way of saying, “We’re here, we’re leveraged, get used to it.”