Analysis: Expectations of a US-Iran ceasefire boosted risk assets, while short squeezes coupled with low volatility drove a Bitcoin rebound.

CoinFeed reported on April 6th that, according to Decrypt, Bitcoin and global risk assets strengthened on news of potential ceasefire negotiations between the US and Iran. Bitcoin rose to $69,350 on Monday morning, a new weekly high. On the news front, media reports indicated that the US, Iran, and regional mediators are discussing a 45-day ceasefire agreement framework, which, if reached, could lead to a longer-term ceasefire. Analysts pointed out that this surge was mainly driven by expectations of ceasefire negotiations, rather than Trump's tough statements. The market's sensitivity to his rhetoric has decreased, and it prefers to judge based on actual action signals. In the derivatives market, the crypto market has formed a typical "short squeeze," with both implied and realized volatility at low levels. Previous market sentiment leaned towards extreme panic, creating conditions for a rebound. However, the situation in the Strait of Hormuz remains a key variable.