Bitcoin Price Blasts Past $80K as Shorts Lose Big

Bitcoin's price surged towards $81,000 on Thursday after geopolitical tensions eased between the US and Iran. The sudden pause in hostilities sent crude oil prices surging and equities sliding, but bitcoin rebounded instead of following suit.

The cryptocurrency had been oscillating between $77,000 and $77,500 through late Wednesday evening, but established support above $77,500 before pushing towards $81,000. By 11:05 a.m. EST, the price reached nearly 5% growth over 24 hours, with market capitalization exceeding $1.62 trillion for the first time since September.

The surge triggered over $164 million in short-position liquidations in four hours, compared to $7.3 million in long positions. Total bitcoin liquidations in that timeframe accounted for more than three-quarters of the $203 million liquidated over 24 hours. This wiped out nearly $415 million in short positions.

Some analysts warn that this rebound may be a 'bull trap', with bitcoin's sharp rejection near the critical $83,000 resistance zone indicating exhaustion. Without sustained institutional spot buying to clear overhead supply, market observers fear price action could devolve into a distribution phase.