Bitcoin steadies above $66K as US‑Iran peace hopes lift risk appetite

Bitcoin hovered just above $66,000 on Friday, buoyed by fresh signals that a US‑Iran de‑escalation could be on the table and by the approach of the Federal Reserve’s April PCE release [2]. The price rebound followed a brief dip below $75,000, the lowest level since mid‑April, which analysts called a “fakeout” and a liquidity sweep [2].

Traders are now watching the $80,000 zone where a large short‑position pile‑up could trigger a squeeze. Market commentary notes that short contracts sit just above that level, and a rise toward it would force leveraged shorts to liquidate [2]. At the same time, the broader risk‑sentiment gauge for crypto has crossed back above the –0.5 threshold, a marker that historically precedes a bullish market regime [1].

The optimism stems from President Donald Trump’s recent statements that a two‑week ceasefire announced on April 7 has opened the door to further negotiations, prompting a drop in oil prices and a rally in risk‑on assets [1]. Bitcoin briefly spiked to $76,000—the highest in a month—when the news broke, and volatility on short‑dated options fell by more than ten points [1]. Although Bitcoin options have not yet shown a strong call‑skew, the 7‑day put premium remains modestly negative at –3%, indicating lingering caution [1].

Meanwhile, Ethereum’s options market has already tilted toward calls, a rare occurrence this year, suggesting that traders see a clearer path for ETH’s upside [1]. The divergence between BTC and ETH option skews highlights differing expectations for the two leading coins as the geopolitical backdrop improves.

If the peace talks progress, the risk‑appetite shift could sustain Bitcoin’s current level and perhaps push it higher, but the Fed’s inflation data and any resurgence of geopolitical tension remain potent downside risks. The real question is whether the market’s tentative bullishness can survive the upcoming macro data and the looming short‑squeeze pressure at $80,000.