Bitcoin (COIN:BTCUSD) pushed past the $74,000 mark on Monday, reaching its highest level in roughly six weeks as a wave of short liquidations lifted prices, although investors remained cautious amid rising geopolitical tensions in the Middle East.
The leading cryptocurrency was last trading 3.4% higher at $73,892.4 by 02:21 ET (06:21 GMT), after earlier touching an intraday high of $74,336.9.
Bitcoin gained about 6% over the past week, even as global equity markets weakened due to surging oil prices that intensified concerns about inflation.
Short liquidations drive crypto rebound
The broader crypto market moved higher as traders who had positioned for further declines were forced to close their bets.
Data from CoinGlass indicated that roughly $344 million worth of crypto positions were liquidated over the previous 24 hours, with short positions accounting for around 83% of the total.
Liquidations occur when leveraged trades are automatically closed after the market moves against them, a dynamic that can accelerate price swings.
Despite the recent rebound, sentiment remained cautious as the conflict in the Middle East entered its third week, raising worries about energy supplies and inflation worldwide.
U.S. President Donald Trump has urged allied nations to help secure the Strait of Hormuz, a critical shipping route for global oil flows, as hostilities in the region continue.
Oil holds above $100 amid Iran conflict
Reports in the media suggested that drone attacks continued across Gulf states on Monday despite repeated claims from U.S. officials that Iran’s military capacity had been severely weakened.
Oil prices also stayed elevated above $100 per barrel amid fears that tensions around the Strait of Hormuz—a key corridor for global crude exports—could disrupt supplies.
U.S. stock futures ticked slightly higher during Asian trading on Monday as investors looked ahead to the Federal Reserve’s policy meeting later this week. Markets widely expect the central bank to keep interest rates unchanged while evaluating inflation risks.
Analysts said geopolitical uncertainty and broader macroeconomic risks could keep cryptocurrency markets volatile in the short term, even as short covering supports prices for now.
Altcoins also rally, Ether jumps
Most major altcoins followed Bitcoin higher during the session as the broader crypto market rebounded.
Ethereum, the second-largest cryptocurrency, surged 8% to $2,265.88.
The third-largest token, XRP, declined 5% to $1.48.
Solana and Polygon each gained around 6%, while Cardano jumped nearly 10%.
Among meme coins, Dogecoin advanced about 7%.