Bitcoin climbed above $78,000 Wednesday morning, marking its highest level in 11 weeks, after President Trump announced an indefinite extension of the Iran ceasefire. The geopolitical de-escalation sparked a broad rally across crypto markets, with major assets posting solid gains and on-chain metrics flashing constructive signals for the first time in months.
Trump said the ceasefire extension would remain in place until Iran’s leadership submits a “unified proposal” to end the war. The announcement cited Tehran’s government as “seriously fractured” and came after Iran declined to send negotiators to a second round of talks in Islamabad and reports surfaced that Vice President Vance’s planned trip to Pakistan had been put on hold.
Markets reacted swiftly to the news. Bitcoin was up 2.2% over 24 hours and 5% on the week by Wednesday morning, with short sellers bearing the brunt—approximately $240 million in leveraged shorts were liquidated. Ethereum followed suit, climbing 3% to $2,390 on solid ETF inflows totaling $43 million.
Stock futures also opened in the green, extending what has been a broader risk-on backdrop for traditional markets as geopolitical tensions ease. The momentum suggests investors are rotating back into risk assets after a period of uncertainty surrounding Iran escalation.
On-Chain Signals Turn Constructive
Bitcoin’s technical setup is showing signs of a trend reversal. The cryptocurrency’s Net Unrealized Profit/Loss metric turned positive for the first time since early January—a key on-chain indicator that analysts interpret as confirmation the bearish trend has ended.
Whale activity is also accelerating. Large holders are accumulating Bitcoin at the fastest pace since July 2025, according to blockchain data. This suggests institutional and high-net-worth investors are viewing current prices as attractive entry points.
The combination of improving on-chain metrics and renewed institutional buying could provide tailwinds for Bitcoin if geopolitical stability holds.
Prediction Markets Go Live With Perpetuals
Two major prediction market platforms announced separate perpetual futures launches on the same day, signaling intensifying competition in the space. Kalshi said its “Timeless” launch goes live April 27 in New York, starting with Bitcoin perpetuals using USD as collateral. Polymarket released an early-access waitlist for its perps product at the same time, teasing Bitcoin, Nvidia, and gold with up to 10x leverage.
Both platforms are leveraging recent regulatory wins. Kalshi has CFTC licenses and secured margin trading approval last month. Polymarket, still not live in the United States, is using this move to expand product offerings even as it raises capital at a $15 billion valuation.
The synchronized announcements underscore how prediction markets are fighting back against traditional derivatives platforms. The CME and Hyperliquid have both begun launching their own prediction market products.
New York AG Targets Prediction Markets
New York Attorney General Letitia James sued Coinbase and Gemini on Tuesday over their prediction market products, alleging the companies violated state gambling laws. The suits target sports-related wagers as well as prediction markets tied to entertainment and politics.
The legal challenge marks the first major state-level push to regulate crypto prediction markets. Both exchanges have argued their products fall outside gambling definitions, but James’ office is taking an aggressive stance on what it views as unregulated wagering.
Ethereum and Solana Face Greater Quantum Risk Than Bitcoin
Coinbase’s Independent Advisory Board released a quantum risk report Tuesday with findings that separate proof-of-stake networks from Bitcoin on security grounds. Ethereum and Solana use cryptographic signatures to secure consensus—a mechanism that could be compromised by a sufficiently powerful quantum computer running Shor’s algorithm.
The report states plainly that “the challenge for proof-of-stake isn’t just upgrading wallets; parts of the core consensus mechanism itself may need to be redesigned.” Bitcoin’s quantum risk centers primarily on exposed wallet public keys, giving it a narrower attack surface than PoS chains.
No current quantum computer poses this threat yet, but the “harvest now, decrypt later” attack vector means the planning window is now, not when quantum computers become powerful enough. The findings underscore how different blockchain architectures face different security implications as quantum computing advances.
Fed Chair Nominee Warsh Addresses Crypto Holdings
Kevin Warsh appeared before the Senate Banking Committee Tuesday for his confirmation hearing as Federal Reserve chair nominee. His financial disclosures include stakes in Solana, Polymarket, Tenderly, and other crypto and DeFi funds—making him the most crypto-friendly Fed chair nominee in history.
On monetary policy, Warsh pushed back against suggestions he would simply cut rates on demand, calling himself an “independent actor.” He said Trump “never asked me to predetermine, commit, fix, decide on any interest rate decision,” and stressed he would “absolutely not” serve as anyone’s political instrument.
Markets initially didn’t love the hawkish undertone, with crypto stocks falling—Coinbase dropped 6%, Robinhood 4.5%. But some analysts argue the read may be too short-term. Warsh has publicly argued the Fed keeps rates too high based on lagging data, and his direct exposure to digital assets suggests potential for easier policy in the second half of 2026 that could push Bitcoin toward $100K.
Scammers Weaponize Iran Ceasefire for Strait of Hormuz Scheme
Unknown actors posing as Iranian authorities have begun contacting shipping companies stranded west of the Strait of Hormuz with fraudulent demands for Bitcoin or Tether (USDT) in exchange for “transit clearance.” Greek maritime risk firm MARISKS warned Monday that at least one vessel paid the fake fee before being fired on during transit.
The scam mirrors a real proposal Iran made in March to charge cryptocurrency transit tolls of roughly $1 per barrel. Scammers are capitalizing on uncertainty around Hormuz passage to exploit shipping companies desperate for safe passage.
Bitcoin Treasury Companies Step Up Buying
MicroStrategy purchased 34,164 BTC for $2.54 billion last week—its largest single-week buy in over 16 months and third-largest in company history. The purchase was largely funded through preferred stock sales, with $2.18 billion of the total coming from STRC issuance.
Strategy now holds 815,061 BTC acquired for $61.56 billion at an average cost of $75,527. Tom Lee’s Bitmine disclosed a similarly aggressive move, purchasing 101,627 ETH for $235 million—its largest ETH acquisition of 2026. Bitmine now holds 4.976 million ETH, representing 4.12% of total circulating supply.
Both treasury companies are betting on sustained institutional demand for crypto assets even as regulatory scrutiny and security incidents continue to create headwinds for the sector.
More Reads:
The Complete Smart Money Concepts Guide From Beginner to Mastery in 2026
Coinbase Advisory Board Urges Industry Action Now Against Quantum Computing and Blockchain
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