Bitcoin briefly moved above $74,000 on Monday, reaching its highest level in roughly six weeks as a wave of short liquidations pushed prices higher. Despite the rally, investors remained cautious due to rising geopolitical tensions in the Middle East.
The world’s largest cryptocurrency was last trading 2.9% higher at $73,498 at 11:02 ET (15:02 GMT) after earlier climbing to an intraday high of $74,484. Bitcoin had already gained about 6% last week, even as global equity markets declined amid concerns that rising oil prices could fuel inflation.
Short Liquidations Drive Crypto Market Rebound
The broader crypto market also moved higher as traders who had positioned for further declines rushed to close their short positions.
According to data from CoinGlass, around $344 million worth of cryptocurrency positions were liquidated over the past 24 hours, with short liquidations accounting for approximately 83% of the total.
Liquidations typically occur when leveraged traders are forced to close positions after the market moves against them. This process often accelerates price movements and can trigger sharp rallies during short squeezes.
Even with the rebound in prices, investor sentiment remained cautious as the Middle East conflict entered its third week. Ongoing hostilities have increased concerns about global energy supply disruptions and inflationary pressures.
Meanwhile, Donald Trump called on international allies to help secure the Strait of Hormuz, a critical maritime route for global oil shipments, as tensions in the region continue.
Oil Prices Stay Above $100 as Iran Conflict Continues
Reports indicated that despite repeated statements from U.S. officials claiming Iran’s military capabilities had been weakened, drone attacks continued in Gulf states on Monday.
Oil prices remained elevated above $100 per barrel, driven by fears that the ongoing Iran conflict could disrupt supplies passing through the strategically important Strait of Hormuz, a key corridor for global crude exports.
U.S. stock markets opened slightly higher on Monday as investors awaited the upcoming Federal Reserve policy meeting later this week. Policymakers are widely expected to keep interest rates unchanged while evaluating the inflation outlook.
Analysts believe that geopolitical tensions and macroeconomic uncertainty could keep cryptocurrency markets volatile in the short term, even as short-covering drives temporary price gains.
Strategy Purchases $1.57 Billion in Bitcoin
In corporate news, Strategy Inc., led by co-founder and executive chairman Michael Saylor, acquired 22,337 Bitcoin between March 9 and March 15 for approximately $1.57 billion, according to a filing with the U.S. Securities and Exchange Commission.
The company paid an average price of $70,194 per Bitcoin during the purchase. This transaction represents the fifth-largest Bitcoin acquisition in Strategy’s history.
Following the latest purchase, Strategy now holds 761,068 Bitcoin, valued at roughly $56 billion at current market prices.
Saylor said the company’s Bitcoin holdings were accumulated at an average cost of $75,696 per coin, bringing the total investment to approximately $57.6 billion, including fees and related expenses.
Altcoins Rally as Crypto Market Recovers
The broader cryptocurrency market also advanced on Monday alongside Bitcoin.
The second-largest cryptocurrency, Ethereum, surged 9% to $2,283.88.
XRP gained 6% to $1.50, while Solana and Polygon rose about 6% and 4%, respectively.
Cardano posted a stronger gain of more than 8%, while meme cryptocurrency Dogecoin climbed 7.6% during the session.
