A ceasefire in the Middle East triggered a $470 million crypto short squeeze — and Morgan Stanley just launched a low-fee Bitcoin ETF
OA
Orion Ashworth
Bitcoin ETF · Apr 8, 2026
Source: DojiDoji Data Terminal
Bitcoin surged to $71,638, up 4.3% in 24 hours, as a surprise two-week ceasefire between the U.S. and Iran defused geopolitical tensions and sent crypto markets into a tailspin of short liquidations. Ethereum climbed 6% to $2,220. The broader rally pushed total crypto market capitalization to $2.51 trillion, a nearly 4% gain.
The move began Tuesday evening after President Trump announced a conditional pause in military operations, brokered by Pakistan’s Prime Minister Shehbaz Sharif, with peace talks set to begin in Islamabad. The de-escalation sent oil prices tumbling — WTI crude dropped from over $112 to $94 per barrel — as fears of disrupted tanker traffic through the Strait of Hormuz receded.
That shift in risk sentiment ignited a short squeeze in crypto derivatives markets. Over $654 million in futures positions were liquidated in 24 hours, with $470 million tied to bearish bets, according to CoinGlass. The Crypto Fear and Greed Index rose to 17 from a weeklow of 9, though it remains in "extreme fear" territory.
Altcoins outpaced Bitcoin’s gains. Zcash led with a 23% surge to $332. AI-related tokens climbed, with Render up 8% to $2.04, Bittensor’s TAO rising 7% to $332, and NEAR Protocol gaining 8% to $1.34. Internet Computer jumped 9% to $2.50. Among large caps, Avalanche rose 6.5% to $9.19, Sui gained 6% to $0.92, Solana added 5% to $84, and XRP advanced 4% to $1.35.
The momentum coincided with Morgan Stanley launching its spot Bitcoin ETF on NYSE Arca under the ticker MSBT, becoming the first major U.S. bank to issue a spot Bitcoin ETF under its own name. The fund charges a 0.14% annual fee — below BlackRock’s 0.25% and the lowest fee among all spot Bitcoin ETFs currently trading. Coinbase handles Bitcoin custody, while BNY Mellon oversees cash custody and fund administration.
Demand for spot ETFs surged on April 6, with U.S. spot Bitcoin ETFs pulling in $471 million in net inflows — the largest single-day total since late February. Spot Ethereum ETFs reversed recent outflows, attracting $120 million in new capital.
Despite the rally, Bitcoin remains confined between $62,000 and $75,000, a range in place since early February. Iran confirmed the ceasefire but warned that reopening the Strait of Hormuz faces "technical limitations" and does not signal an end to the broader conflict.
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