On Monday, Bitcoin climbed above $70,000 for the first time since March 25, as investors weighed reports of Iran seeking a ceasefire amid escalating threats from U.S. President Donald Trump to attack Iranian civilian infrastructure.
Bitcoin rose more than 3.5% at one point, surpassing $70,200, before giving back some of those gains. By 10:35 a.m. London time, it was trading just below $70,000.
Ethereum, the second-largest cryptocurrency, advanced as much as 5.1%. According to CoinGlass, approximately $273 million in bearish crypto bets were liquidated over the past 24 hours.
On Sunday, Trump issued a more severe threat on social media, warning that Iran would face "hell" if it did not reopen the Strait of Hormuz. He suggested that attacks on Iranian power plants could begin as early as Tuesday if the strait remained closed.
"Many Bitcoin short positions were built over the weekend, and after Trump's remarks, Middle East tensions flared up again," said Damien Loh, Chief Investment Officer at Ericsenz Capital. He noted that holidays in Europe and Asia on Monday exacerbated volatility in a low-liquidity environment. "Bitcoin is no longer a reliable proxy for overall risk appetite. When markets opened today, short positions shifted to stock index futures, and some short covering triggered a short squeeze amid thin liquidity."
Axios reported on Monday that regional mediators have been pushing for a 45-day ceasefire agreement.
Oil prices erased earlier gains, falling back below $108 per barrel. Gold rose about 0.5%, trading above $4,700 per ounce. S&P 500 futures advanced roughly 0.4%.
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