Bitcoin, Ethereum, and XRP Decline While Dogecoin Holds Gains Amid US-Iran Uncertainty

Major cryptocurrencies traded lower alongside U.S. equities on Monday as unresolved tensions surrounding Iran negotiations continued to suppress risk appetite across markets. The sell-off reflected a broader risk-off pattern in which digital assets have increasingly moved in tandem with equities during periods of geopolitical uncertainty.

Crypto Market Sells Off

Bitcoin came under heavy selling pressure, with 24-hour trading volume surging 56% and the price declining toward $63,000. Ethereum saw its trading volume climb 70% as the asset slipped below $1,900.

More than $200 million in liquidations swept through the cryptocurrency market over the past 24 hours, primarily affecting bullish long positions, according to data from Coinglass. Such forced liquidations can amplify downside moves as exchanges automatically close leveraged positions, creating cascading selling pressure.

Bitcoin's open interest dropped 0.40% over the same period, consistent with the decline in spot price. At the same time, retail and whale derivatives traders on Binance increased their BTC long exposure following the price pullback, a signal that some market participants viewed the dip as a buying opportunity despite the broader uncertainty.

The total global cryptocurrency market capitalization stood at $2.18 trillion, down 1.35% over the preceding 24 hours.

Stocks Lag Amid Iran Deadlock

U.S. stocks opened the week in negative territory. The Dow Jones Industrial Average declined 60.95 points, or 0.11%, closing at 53,975.98. The S&P 500 slipped 0.06% to finish at 7,753.11, while the tech-heavy Nasdaq Composite fell 0.32% to settle at 26,605.36.

Iranian President Masoud Pezeshkian addressed the situation over the Strait of Hormuz, stating that the war "has to be brought to an end at some point." The Strait of Hormuz is one of the world's most critical oil shipping chokepoints, and disruptions or threats there have historically reverberated through global energy and financial markets.

Meanwhile, unverified claims circulated on social media suggesting that Iranian officials were considering a strategy involving President Donald Trump and intended to wait out his term until 2029. There was no official confirmation from Tehran regarding these reports.

Analysts Point to Shifting Supply Dynamics

Blockchain research firm Santiment reported that Bitcoin's largest wallets — those holding at least 10,000 BTC — reached a six-month high, marking a 7% increase over the past two months.

"Smaller holders are losing share, while the largest wallets are gaining presence again," Santiment noted. "Supply is rotating toward stronger hands before the next major market fluctuation, and this usually increases the likelihood of that fluctuation being a bullish one."

On-chain analytics firm CryptoQuant indicated that Bitcoin may be entering an acute "top formation phase," with downside risk growing as prices rise. The firm also assessed the probability of a sustainable breakout into a "stable uptrend" as limited.

"Given the elevated risk and weak data, larger buys should be held back for now. Stronger cyclical entries become attractive near $51,000," CryptoQuant added.

The combination of geopolitical headwinds and mixed on-chain signals leaves market participants watching for further developments in U.S.-Iran diplomacy and incoming macroeconomic data that could shape the direction of risk assets in the near term.