Bitcoin climbed above $74,000 on Monday, marking its highest level in around six weeks, as a surge in short liquidations pushed prices higher. The move came even as investors remained cautious amid ongoing geopolitical tensions in the Middle East.
The largest cryptocurrency was trading 3.4% higher at $73,892.4 at 02:21 ET (06:21 GMT), after earlier touching a session high of $74,336.9.
Bitcoin advanced roughly 6% over the past week, defying weakness in global equity markets that have been pressured by rising oil prices and renewed concerns about inflation.
Short squeeze fuels crypto gains
The broader crypto market also moved higher as traders who had positioned for further declines were forced to unwind their short bets.
Figures from CoinGlass showed that about $344 million worth of crypto positions were liquidated in the last 24 hours, with short positions making up nearly 83% of the total.
Liquidations occur when leveraged positions are automatically closed after prices move against traders, often accelerating price momentum in the market.
Despite the rally, investor sentiment remained guarded as the Middle East conflict entered its third week, heightening worries over global energy supply and inflation.
U.S. President Donald Trump has urged allied nations to help secure the Strait of Hormuz, a strategic route for global oil shipments, as fighting in the region continues.
Oil holds firm above $100 amid Iran tensions
Reports indicated that drone attacks persisted across Gulf states on Monday, despite repeated statements from U.S. officials claiming that Iran’s military capacity had been significantly weakened.
Oil prices also remained elevated above $100 per barrel amid fears of supply disruptions around the Strait of Hormuz, a key corridor for global crude exports.
U.S. stock futures traded slightly higher during Asian hours on Monday as investors looked ahead to the Federal Reserve’s upcoming policy meeting. The central bank is widely expected to leave interest rates unchanged while monitoring inflation pressures.
Analysts said that geopolitical uncertainty and broader macroeconomic risks could keep cryptocurrency markets volatile in the near term, even as short covering supports prices in the short run.
Altcoins rally; Ether leads gains
Most major altcoins also posted gains on Monday as the crypto market rebounded.
Ethereum, the second-largest cryptocurrency, surged 8% to $2,265.88.
XRP, the third-largest token, slipped 5% to $1.48.
Solana and Polygon each rose about 6%, while Cardano jumped close to 10%.
Among meme coins, Dogecoin climbed roughly 7%.
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