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Bitcoin climbed above the $74,000 level on Monday, reaching its highest point in roughly six weeks as a wave of short liquidations fueled a sharp rebound in the cryptocurrency market.
By 02:21 ET (06:21 GMT), the world’s largest cryptocurrency was up 3.4% at $73,892.4, after earlier touching an intraday high of $74,336.9.
The latest move extended Bitcoin’s recent momentum, with the digital asset gaining around 6% last week, even as global equity markets declined amid rising oil prices and inflation concerns.
Short liquidations drive crypto rally
The surge in Bitcoin and broader cryptocurrencies was largely driven by traders closing bearish positions.
Data from CoinGlass showed that roughly $344 million in crypto positions were liquidated over the past 24 hours, with short liquidations accounting for about 83% of the total.
Short liquidations occur when traders betting on falling prices are forced to buy back assets after the market moves against them. This process can accelerate upward price momentum as positions are rapidly closed.
Geopolitical tensions still cloud outlook
Despite the rally, investor sentiment remains cautious as the conflict in the Middle East entered its third week.
The ongoing war involving the United States, Israel, and Iran has raised concerns about global energy supplies and inflation.
U.S. President Donald Trump has called on allied nations to help secure the Strait of Hormuz, a crucial maritime route that handles a significant portion of global oil shipments.
Meanwhile, media reports suggested that drone attacks continued across Gulf states on Monday, despite repeated claims from U.S. officials that Iran’s military capabilities had been significantly weakened.
Altcoins surge alongside Bitcoin
The broader cryptocurrency market also rallied strongly on Monday.
- Ethereum jumped 8% to $2,265.88
- Solana and Polygon each gained about 6%
- Cardano surged nearly 10%
- Dogecoin rose 7%
However, XRP declined 5% to $1.48, diverging from the broader crypto rebound.
Despite the latest rally, many altcoins remain well below recent highs, leaving overall market sentiment fragile as investors continue to monitor geopolitical and macroeconomic developments.
