A potential US military strike on Iran’s main oil export terminal helped push Bitcoin to its highest price in over a month Monday, as traders poured money into crypto while pulling back from stocks.

Squeeze At The Top

Reports show Bitcoin jumped from roughly $72,400 to $74,320 in under 30 minutes — a move sharp enough to wipe out $113 million in short positions within the hour.

Based on data from CoinGlass, around 94,612 traders were liquidated in the last 24 hours, the total liquidations comes in at $385.48 million.

Short sellers, who had bet on prices falling, were forced to buy back their positions as the price climbed, which pushed it even higher.

By early afternoon, Bitcoin was trading near $73,900, up 2.7% on the day.

War Fears, Oil Shocks, And A Crypto Bounce

The backdrop was anything but calm. US President Donald Trump has been pushing allies — including Britain and Japan — to help form a coalition to reopen the Strait of Hormuz, which Iran has blocked.

Reports indicate Trump is also weighing a military seizure of Kharg Island, the facility that handles roughly 90% of Iran’s crude oil exports. The threat rattled energy markets and sent oil prices climbing.

But while stocks have shed trillions in value since the US-Iran conflict broke open on February 28, crypto moved the other way.

The total digital asset market cap has grown by more than $310 billion since then. Bitcoin alone is up over 15% from its post-strike lows. Gold posted only modest gains over the same stretch.

Traders point to a shift in where money goes when traditional markets wobble. As oil supply fears mount and inflation concerns build, some investors have been moving capital into assets like Bitcoin that sit outside the traditional financial system.

ETF Inflows Add Fuel

The rally isn’t just about war headlines. Continued cash flows into US spot Bitcoin exchange-traded funds have provided a steadier, quieter lift beneath the more dramatic price swings.

Optimism around pending crypto legislation added to that mood heading into Monday’s market open.

Still, the week ahead carries a lot of uncertainty. A pullback in geopolitical tension could ease the demand that helped drive the spike. And with leveraged buyers now holding positions near recent highs, a reversal could hit hard and fast — the same way Monday’s rally did on the way up.

Featured image from Arash Khamooshi/The New York Times/Redux, chart from TradingView