Coinpaper
April 3, 2026 11:16 AM UTC

Bitcoin Price Today: Hits $71K as Oil Pulls Back from Iran Peak

Bitcoin has staged a stunning V-shaped recovery, surging back above $71,000 for the first time since the Iran conflict erupted, as traders bet on de-escalation following reports that U.S.-led strikes have significantly weakened Tehran's command structure. BTC climbed as high as $71,450 intraday before settling around $71,120, marking a roughly 6.5% gain from Wednesday lows near $66,800 and reversing nearly all of the war-driven selloff from earlier in the week. The rebound coincides with Brent crude pulling back from $84 peaks toward $81 after initial panic over the Strait of Hormuz eased slightly, reducing some of the macro risk-off pressure on crypto. Short Squeeze Fuels Bitcoin's $5K Rally in Hours The move triggered a massive short squeeze, with over $320 million in leveraged short positions liquidated across major exchanges in the past 24 hours, more than 85% of total crypto liquidations. Bitcoin-specific shorts accounted for roughly $280 million of that carnage, acting as forced buy orders that accelerated the rally once BTC decisively broke back above the critical $69,000-$70,000 resistance zone. Ethereum followed suit, jumping 7% to around $2,074, while altcoins like Solana (+9%) and XRP (+6%) posted sharper gains as risk appetite returned. Total crypto market cap rebounded above $2.1 trillion, with spot volumes spiking 45% to $98 billion as dip-buyers piled in. Iran De-Escalation Bets Drive Risk-On Reversal Markets are repricing the Iran narrative from ”prolonged regional war” to ”contained regime decapitation.” Confirmation of Supreme Leader Khamenei's death and reports of internal power struggles in Tehran have shifted sentiment toward hopes that successor infighting and U.S. naval dominance in the Gulf could shorten the conflict window. President Trump's comments that ”the hard part is done” and offers of reconstruction aid further fueled optimism that Hormuz tanker traffic might resume within days, capping oil's war premium below $90 per barrel. That reduces the tail risk of sustained $4.50+ U.S. gas prices and global inflation spikes, allowing high-beta assets like Bitcoin to snap back. Outlook: $75K Next if Oil Holds Below $85? Key support now sits at $69,500-$70,000, with resistance at $72,500 and the $74,000 cycle high from late February. Derivatives data show open interest rebuilding rapidly, but funding rates remain mildly positive, suggesting fresh longs rather than excessive euphoria. If Brent stabilizes below $85 and Iran headlines stay constructive, analysts eye a push toward $75,000 by week's end; renewed Hormuz blockades or Iranian counterstrikes could easily retest $68,000. For now, Bitcoin's reclaiming of $71K signals the war shock may have been fully absorbed, positioning BTC as a twisted ”digital gold” that thrives on both chaos and its resolution.