Bitcoin Price Surges Past $81K on Easing Geopolitical Tensions

Bitcoin's price trend rebounded on Thursday as hostilities paused between the United States and Iran. The sudden onset of conflict had previously sent crude oil prices surging, causing equities to slide due to potential trade disruptions through the Strait of Hormuz.

The cryptocurrency oscillated between $77,000 and $77,500 late Wednesday evening but established support above $77,500 by 10:35 p.m. It then twice attempted to break $78,000 before bullish momentum accelerated around 6:40 a.m. EST, pushing Bitcoin toward $81,000 by 11:05 a.m. EST.

The surge pushed Bitcoin's market capitalization back above $1.62 trillion for the first time in September, echoing the August rally where the asset gained over $10,000 in four days. At 10:52 a.m. EST, Bitcoin traded above $80,800, up nearly 5% over 24 hours.

In derivatives markets, the sudden price surge triggered over $164 million in short-position liquidations in four hours, compared to $7.3 million in long positions. Total Bitcoin liquidations in four hours alone accounted for more than three-quarters of the $203 million liquidated over the prior 24 hours.