Bitcoin and the broader cryptocurrency market experienced a sharp rally late Monday, propelled by a combination of improving macroeconomic sentiment and a wave of short liquidations. Bitcoin climbed approximately 4% over a 24-hour period, reaching a peak of $75,653 at approximately 10:00 p.m. ET before retracing to $74,300. The upward momentum extended to major altcoins, with Ethereum rising 3.28% to $2,315 and XRP advancing 5% to $1.54.
The volatility triggered a massive liquidation event totaling roughly $609 million across the crypto ecosystem. Data aggregated by Coinglass indicates that $485.6 million of these liquidations were from short positions, suggesting that traders betting against the market were forced to buy back assets as prices rose. “
Market sentiment appears to be recovering from recent lows, with the Crypto Fear & Greed Index climbing to 28. While still in “fear” territory, the shift marks an exit from the “extreme fear” zone that dominated the past week. Analysts point to a resurgence in institutional spot demand as a primary driver of this rebound. Last week, U.S. spot Bitcoin ETFs saw $767.3 million in net inflows, marking three consecutive weeks of positive movement, while spot Ether ETFs recorded $160.8 million in inflows over the same period.
The crypto rally coincided with a stabilizing trend in global equities. On Monday, the Dow Jones Industrial Average rose 0.83%, the S&P 500 gained 1.01%, and the Nasdaq Composite climbed 1.22% as investors moved past losses tied to the recent conflict involving Iran. This positive momentum carried over into Asian markets on Tuesday morning, with South Korea’s Kospi jumping 2.6% and Japan’s Nikkei 225 rising 0.5%.
Despite the optimism in risk assets, the energy sector remains a point of concern. Oil prices resumed their climb late Monday, with Brent crude advancing to $103 per barrel and WTI crude gaining to $96.03. The price hike follows a call from U.S. President Donald Trump for international assistance in addressing disruptions in the Strait of Hormuz, a vital shipping route currently facing Iranian interference.
