About $150 million in crypto short positions were liquidated as bitcoin reclaimed $65,000 following the U.S.-Iran peace agreement announcement. The liquidations occurred after U.S. President Donald Trump declared the deal 'officially complete' and announced the Strait of Hormuz is now open. The move came as crude oil prices dropped roughly 4% behind the de-escalation news, triggering a broader risk-on rotation across markets. Short liquidations happen when exchanges forcibly close leveraged positions due to insufficient margin, with rising prices forcing bearish traders to buy back assets and accelerating upward momentum. The bitcoin rebound followed weeks of pressure amid sustained institutional outflows from spot ETFs.
Crypto Market Liquidates $150 Million in Short Positions
The $150 million liquidation event occurred as bitcoin climbed back above $65,000 following the U.S.-Iran peace agreement. The wipeout came after U.S. President Donald Trump declared the deal 'officially complete' and said the Strait of Hormuz is now open.
![Liquidation data visualization]()
Liquidations of this nature occur when an exchange forcibly closes a leveraged position because the trader can no longer meet margin requirements. Short liquidations happen when prices rise sharply, forcing bearish traders to buy back the asset, which can accelerate the very rally that triggered the squeeze.
The move came alongside a broader risk-on rotation as crude oil prices crashed roughly 4% behind news of the de-escalation. With the Strait of Hormuz, a waterway handling about 20% of global oil, set to reopen, traders unwound bets that had been built around a prolonged Middle East conflict.
For bitcoin, the rebound followed weeks of pressure, given the market had drifted lower amid sustained institutional outflows, leaving leveraged short sellers confident enough to press their bets. As soon as the peace announcement went live, all such positions unwound quickly.
Spot Bitcoin ETFs Record $316 Million Weekly Outflows
Spot bitcoin exchange-traded funds (ETFs) saw $316 million in net outflows during the week of June 8 to June 12, marking a fifth straight week of withdrawals. Spot ethereum ETFs recorded a further $14.91 million in outflows over the same period.
![ETF outflow data chart]()
That divergence between a leverage-driven price pop and steady fund redemptions leaves the rally's foundation uncertain. Liquidation-fueled moves can reverse as quickly as they appear once the forced buying is exhausted.
Peace Deal Signing Ceremony Scheduled for Friday
An official signing ceremony for the peace deal is scheduled for Friday in Switzerland.
FAQ
What triggered the $150 million crypto short liquidation?
The liquidations occurred after U.S. President Donald Trump declared the U.S.-Iran peace deal 'officially complete' and announced the Strait of Hormuz is now open, causing bitcoin to reclaim $65,000.
How much did spot bitcoin ETFs lose during the week of June 8-12?
Spot bitcoin ETFs saw $316 million in net outflows during the week of June 8 to June 12, marking a fifth consecutive weekly drop, while spot ethereum ETFs recorded $14.91 million in outflows over the same period.
