Bitcoin rose sharply on March 23 after U.S. President Donald Trump said Washington had held constructive talks with Iran and would pause planned military strikes for five days. 

The move lifted market sentiment after several sessions of pressure linked to Middle East tensions. The rebound also triggered a wave of short liquidations across the crypto market.

Bitcoin had fallen below $68,500 earlier in the session as traders reacted to geopolitical uncertainty and broader risk-off sentiment. The asset then reversed course within hours and climbed by about $3,000, reaching $71,500 before giving up part of the gain.

At the time of reporting, Bitcoin traded near $71,000. The move marked its first return to the $71,500 area since last Thursday and showed how quickly sentiment shifted after Trump’s latest comments on the Iran situation.

Trump statement shifts market mood

Trump said the United States and Iran had held “very good and productive conversations” over the previous two days. He also said he had instructed the “Department of War” to delay military action against Iranian power plants and energy infrastructure for five days while talks continue.

The statement pointed to a possible easing in tensions after weeks of conflict. It also came about 36 hours after Trump warned he would “obliterate” Iran if the Strait of Hormuz was not reopened safely, making the change in tone a key factor in the market reaction.

Short traders face heavy losses

Bitcoin’s fast recovery caught bearish traders off guard. Data from CoinGlass showed that nearly $270 million in short positions were liquidated within the past hour as prices moved higher.

Total liquidations across the crypto market reached about $780 million by press time. More than 200,000 traders were liquidated over the same period, showing the scale of the sudden reversal and the pressure on leveraged positions.