Bitcoin’s $80K fakeout wipes out shorts amid Iran headlines

Bitcoin (BTC) saw a sharp price swing on Monday after reports said Iran had sent the U.S. a new proposal through Pakistani mediators. 

The move pushed BTC close to $80,000 before the price quickly slipped lower. The rally lifted Bitcoin to a 12-week high near $79,500. The price then fell by about $2,000 within a short period as traders reacted to fast-changing headlines.

Axios reported that Iran gave the U.S. a proposal aimed at reopening the Strait of Hormuz and ending the war. The plan would delay nuclear talks to a later stage, according to the report.

A U.S. official and two other sources familiar with the matter said Iran had sent Washington a proposal on reopening the Strait of Hormuz and ending the war. President Donald Trump was expected to meet his national security and foreign policy team on Monday to review the next steps.

Liquidations climb as traders get caught

The sudden Bitcoin pump and pullback hit leveraged traders across the crypto market. Total liquidations reached about $275 million on a daily scale after the market swung sharply.

Short traders took the biggest hit during the first move higher. More than $140 million in short positions were wiped out in the past 12 hours, as Bitcoin moved against bearish bets.

Altcoins follow Bitcoin’s volatile move

Major altcoins also followed Bitcoin’s price action. The broader crypto market moved higher during the first reaction, then weakened as BTC failed to hold near its new local high.

The report shows how geopolitical headlines can still drive short-term crypto price action. Bitcoin had traded near $78,000 over the weekend before the latest U.S.-Iran deal reports changed market direction.

Traders now await more details from Washington and Tehran. Any progress on the Strait of Hormuz talks could support risk assets, while failed talks may add pressure to Bitcoin and the wider crypto market.