Bitcoin staged a dramatic intraday whipsaw on Monday, sprinting toward an $80,000 marquee only to roll over minutes later after breaking geopolitical headlines shook markets. What happened - Reports from Axios — backed by a U.S. official and two other sources — said Iran had sent Washington a proposal via Pakistani mediators aimed at reopening the Strait of Hormuz and ending hostilities. The plan reportedly pushes nuclear talks to a later stage. - The news briefly lifted BTC to a 12-week high near $79,500, close to the $80,000 level, before the price slipped roughly $2,000 in a rapid reversal as traders reacted to the evolving story. - President Donald Trump was reported to be meeting his national security and foreign policy team Monday to review next steps, adding to the fast-changing headlines. Market impact - The sudden pump and pullback hammered leveraged positions across the crypto market. Total liquidations reached about $275 million on the day. - Short sellers were hit hardest: more than $140 million in short positions were wiped out over roughly 12 hours as Bitcoin moved against bearish bets. - Major altcoins mirrored Bitcoin’s move — rising on the initial reaction and weakening once BTC failed to hold its local high. Why it matters - The episode underscores how geopolitical developments — particularly anything affecting the strategically vital Strait of Hormuz — can trigger sharp, short-term price swings in risk assets like Bitcoin. - BTC had been trading near $78,000 over the weekend before the Iran-U.S. reports sent the market into a brief frenzy. What traders are watching - Market participants are now waiting for confirmation and more detail from Washington and Tehran. Any real progress on reopening the Strait of Hormuz and de-escalating conflict could buoy risk-on assets, while stalled or failed talks would likely add downside pressure to Bitcoin and the broader crypto market. Read more AI-generated news on: undefined/news