Bitcoin experienced a dramatic $2,000 price swing on Monday after reports emerged that Iran had sent the U.S. a new proposal through Pakistani mediators to reopen the Strait of Hormuz and end the war. According to Axios, the plan would delay nuclear talks to a later stage, with President Donald Trump expected to meet his national security and foreign policy team on Monday to review the next steps. Bitcoin jumped near $79,500 during the initial rally before quickly falling by about $2,000 as traders reacted to fast-changing headlines. The move pushed Bitcoin to a 12-week high before the price slipped lower, demonstrating how geopolitical developments continue to drive short-term crypto price action. As per crypto.news, the rally lifted Bitcoin to a 12-week high near $79,500 before the sharp pullback, with traders now awaiting more details from Washington and Tehran.
US Bitcoin ETFs have extended their positive momentum with nine consecutive trading days of net inflows totaling $2.12 billion through April 26, marking the longest streak since the nine-day October 2025 run that took Bitcoin to its $126,000 all-time high. According to Bloomberg ETF analyst Eric Balchunas, every single rolling period they track is now positive for the first time in months. BlackRock's iShares Bitcoin Trust led the charge with approximately $1.6 billion in the latest stretch, followed by Morgan Stanley's Bitcoin Trust with about $115 million and Grayscale's BTC product adding more than $73 million. This renewed demand has lifted total net assets across US spot Bitcoin ETFs to approximately $102 billion, representing roughly 6.57% of Bitcoin's market capitalization. The sustained momentum has now surged to $2.43 billion for the month, with BlackRock's IBIT emerging as the standout vehicle with its $3 billion in one-year flows putting it in the top 1% of all ETFs by volume.
Major central banks are set to announce rate decisions this week, with markets expecting steady rates and a cautious Fed stance. The Federal Reserve is expected to keep interest rates unchanged at its April 28-29 meeting, with markets pricing in a pause amid 3.3% inflation and geopolitical risks. This cautious stance is supporting Bitcoin ETF inflows and sustaining BTC near $78,084, where it's up 0.44% in the latest trading session. The Fed's pause amid 3.3% inflation is creating a supportive environment for risk assets like Bitcoin, with the central bank's measured approach providing stability to the crypto market. Markets are also positioning ahead of US GDP data and the April 27-28 central bank rate decisions, with traders watching for potential volatility as these outcomes could impact crypto liquidity and risk sentiment. As per The Economic Times, experts suggest that if the momentum continues, this month could become Bitcoin's best April since 2020, with the immediate catalyst for a directional move being the Fed's remarks after the FOMC meeting.
The sudden Bitcoin pump and pullback triggered significant market liquidations, with total liquidations reaching about $275 million on a daily scale after the sharp market swing. According to crypto.news, short traders took the biggest hit during the first move higher, with more than $140 million in short positions wiped out in the past 12 hours as Bitcoin moved against bearish bets. The sudden price swing caught leveraged traders across the crypto market off guard, demonstrating how quickly geopolitical headlines can impact crypto liquidity. Crypto liquidations reached about $275 million as traders reacted to the fast-moving geopolitical developments, with the broader crypto market moving higher during the initial reaction before weakening as BTC failed to hold near its new local high. This volatility reflects how geopolitical headlines continue to drive short-term crypto price action, with Bitcoin having traded near $78,000 over the weekend before the latest U.S.-Iran deal reports changed market direction.
Cost-basis data reveals critical support and resistance levels as Bitcoin approaches the $80,000 region. Bitwise data shows the aggregate cost basis for US spot Bitcoin ETF buyers at approximately $81,000 as of April 24, with IBIT's cost basis around $80,200 and Fidelity's FBTC and Bitwise's BITB at lower levels of about $59,300 and $55,400 respectively. This places many recent ETF buyers close to breakeven as Bitcoin approaches $80,000, with a move through that area potentially strengthening confidence among newer holders while another rejection may encourage profit-taking and hedging. The Short-Term Holder Cost Basis sits at $80,100, representing the average entry price for anyone who bought in the last 155 days, with a move above it potentially pushing more than 54% of recent buyers into profit. However, historical data shows this threshold has coincided with local top formation as short-term holders use rallies to break even and exit, creating a potential resistance zone. Vikram Subburaj, CEO of Giottus, notes that support sits near $77,300-$78,000 and the first resistance zone is $79,400-$80,000, with a decisive move above $80,000 needed to confirm this is more than a relief rally.
The crypto market shows mixed performance over the past 24 hours, with Bitcoin down 0.4% to $77,606 and Ethereum up 0.02% to $2,318 as of latest reports. Among altcoins, XRP, BNB, Solana, Dogecoin, and Cardano witnessed a decline of less than 1%, while Tron and Hyperliquid were up 0.05% and 2% respectively. However, gaming tokens face pressure with Axie Infinity dropping 8.97% and Ronin falling 2.63% due to profit-taking after recent rallies. The mixed performance reflects ongoing volatility as traders position ahead of central bank decisions, with gaming tokens and DeFi remaining volatile as investors take profits after recent gains. No major scheduled events are planned for April 26, but markets are preparing for the FOMC, ECB, and BoJ outcomes, which could significantly impact crypto liquidity and risk sentiment in the coming days. As per The Economic Times, the global crypto market capitalisation went up 2% to $2.64 trillion, with the market showing a measured recovery rather than outright euphoria.
