Bitcoin surged above $74,000 on Monday, its highest level in nearly six weeks, buoyed by a wave of short position liquidations, even as investors remained wary of escalating geopolitical tensions in the Middle East.
The world’s largest cryptocurrency was trading 3.4% higher at $73,892.4 by 10:21 AM Saudi time, after rising to $74,336.9 earlier in the session.
Bitcoin jumped 6% last week, even as global stock markets declined as rising oil prices fueled inflation fears.
Cryptocurrencies jump on short position clearances
Cryptocurrency markets rose broadly as traders who had bet on further declines rushed to cover their positions.
Data from CoinGlass showed nearly $344 million in total cryptocurrency liquidations over the past 24 hours, with short position liquidations accounting for about 83% of the total.
Clearances occur when traders using leverage are forced to close their positions after prices move against them, often amplifying market movements.
Despite the recovery, market sentiment remained cautious as the conflict in the Middle East entered its third week, raising concerns about global energy supplies and inflation.
US President Donald Trump has called on allies to help secure the strategic Strait of Hormuz, a vital route for global oil shipments, as hostilities continue in the region.
Oil prices remain above $100 a barrel amid Iran's war
Media reports showed that despite repeated claims by US authorities that Iranian military capabilities had been destroyed, drone attacks in Gulf states continued on Monday.
Oil prices also remained high above $100 a barrel amid concerns about supply disruptions around the strategic Strait of Hormuz, a key shipping route for global crude oil exports.
U.S. stock futures edged higher in Asian trading on Monday as investors awaited the U.S. Federal Reserve's monetary policy meeting later this week, where policymakers are widely expected to leave interest rates unchanged while assessing inflation risks.
Analysts said that geopolitical uncertainty and macroeconomic risks could keep cryptocurrency markets volatile in the near term, even as short covering pushes up prices in the near term.
Cryptocurrency prices today: Altcoins surge; Ether jumps 8%
Most alternative currencies also rose on Monday, amid a broader recovery in cryptocurrencies.
Ethereum, the world's second-largest cryptocurrency, jumped 8% to $2,265.88.
The world's third-largest cryptocurrency, XRP, fell 5% to $1.48.
Solana and Polygon each rose by 6%, while Cardano rose by approximately 10%.
Among the meme symbols, Dogecoin rose by 7%.
