Bitcoin briefly punched through $74,000 on Monday morning before pulling back, leading a broad rally that gave crypto its strongest weekly performance since the Iran war started in late February. As of 6:30 a.m. ET, BTC traded around $73,400 with ETH at $2,268, up roughly 9% and 14% on the week respectively.

The trigger was a cluster of de-escalation signals arriving at once. Two tankers transited the Strait of Hormuz on Sunday, the first commercial passage since the war began, after Iran’s foreign minister narrowed the shipping blockade to “enemy” vessels only. President Trump said the U.S. was in talks with Tehran. Oil pulled back from its highs, the dollar weakened, and S&P futures posted their first gain in five days.

This story is an excerpt from the Unchained Daily newsletter.

Short sellers paid the price: $344 million in liquidations hit over 24 hours, with bears accounting for 83% of the total. Singapore-based QCP noted that the options market is now eyeing the $75,000 strike, where roughly 8,000 contracts of March 27 calls sit. A push above that level could force dealers to hedge aggressively, potentially accelerating the move.

The Fed’s two-day meeting starting Tuesday looms as the next test. With oil still elevated but Hormuz reopening, the inflation picture looks different than it did a week ago.