Bitcoin jumped more than 5% to nearly $74,900 on Monday as markets reacted to signals that US-Iran peace talks could resume, triggering a short squeeze and lifting the broader crypto market.

Bitcoin surged more than 5% on Monday to a four-week high near $74,900, driven by market optimism after President Trump signaled renewed contact with Iran and the possibility of resumed peace negotiations. The token settled around $74,300 to $74,500 after touching that intraday peak, representing a sharp recovery from a low of $70,741 hit over the weekend.

The sell-off that preceded the rally was equally dramatic. Over the weekend, Trump ordered a US naval blockade of the Strait of Hormuz following the collapse of peace talks, sending oil prices past $104 a barrel — a roughly 70% gain since January — and triggering a brief flight from risk assets. Bitcoin’s bounce on Monday reflected the market’s hair-trigger sensitivity to geopolitical developments, with prices moving several percentage points within hours of major headlines.

This story is an excerpt from the Unchained Daily newsletter.

The recovery triggered a significant short squeeze. Funding rates had turned negative in the days before the rally, signaling crowded bearish positioning. As buyers stepped in near the $70,000 support level, leveraged shorts were forced to cover, accelerating the upside. Trading volume surged roughly 80% to $51.25 billion. Ethereum gained 8% to $2,367, and the total crypto market cap approached $2.6 trillion.

Spot bitcoin ETF inflows have provided structural support at the $68,000 to $70,000 range in recent sessions. BlackRock’s IBIT has pulled in $1.5 billion year-to-date, and Morgan Stanley’s MSBT debuted earlier in April at a 0.14% fee — the lowest in the market.

The $75,000 level remains the key technical threshold analysts are watching. Heavy short interest is clustered in the $73,000 to $75,000 range, and trading desks have said a sustained break above $75,000 on strong volume could open a path toward $80,000. Bitcoin currently sits roughly 40% below its October 2025 all-time high of $126,198. Downside risks include tax-season selling ahead of the April 15 deadline and the potential for inflation pressure — March CPI printed at 3.3% — to push back Federal Reserve rate cuts.