Bitcoin, Ethereum, XRP and Dogecoin Rise as U.S.-Iran Hostilities Pause
Key Takeaways
- •Bitcoin rose as high as $65,500 before sellers pushed back, while its 24-hour trading volume increased nearly 9%.
- •Ethereum reached an intraday peak of $1,960 before reversing sharply and moving lower.
- •More than $200 million was liquidated across crypto markets over 24 hours, including $160 million in bearish short positions.
- •U.S. stock futures advanced overnight, with Nasdaq 100 futures gaining 1.21%, S&P 500 futures rising 0.66%, and Dow futures up 0.49%.
- •Analysts Michaël van de Poppe and Jesse Olson cited potential bullish signals, including a possible crypto market bottom and a Bitcoin indicator crossover.
Leading cryptocurrencies moved higher late Sunday alongside U.S. stock futures as investors assessed a pause in hostilities between the United States and Iran. The move reflected a broader rebound in risk assets during overnight trading, with crypto markets often reacting quickly because they trade around the clock.
Cryptocurrencies Move Higher Overnight
Bitcoin rose to $65,500 late in the session before meeting sharp resistance from sellers. Trading volume increased nearly 9% over the previous 24 hours.
Ethereum followed a similar pattern, climbing to an intraday high of $1,960 before reversing sharply and moving lower.
More than $200 million was liquidated across the cryptocurrency market over the past 24 hours, including $160 million in bearish short positions, according to Coinglass data.
Bitcoin open interest declined 1.75% during the same period. A drop in open interest alongside a higher spot price typically points to short covering, meaning short sellers are buying back contracts to close their positions. In crypto derivatives markets, forced liquidations and short covering can intensify intraday price swings, especially when traders are positioned heavily in one direction.
Even with the price moves, “Fear” remained the prevailing market sentiment, according to the Crypto Fear & Greed Index.
The global cryptocurrency market capitalization stood at $2.22 trillion after contracting 0.54% over the previous 24 hours.
Stock Futures Rally During Pause in Fighting
U.S. stock futures also advanced overnight Sunday. Dow Jones Industrial Average futures rose 253 points, or 0.49%, as of 8:50 p.m. EDT. Futures tied to the S&P 500 gained 0.66%, while Nasdaq 100 futures climbed 1.21%.
The pause followed 13 days of U.S. strikes, while Iran has also halted retaliatory attacks since then. However, Washington continued its naval blockade of Iranian ports. Geopolitical developments in the Middle East are closely watched by global markets because they can affect energy supplies, inflation expectations and investor appetite for risk.
Analysts Discuss Potential Market Bottom
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said the cryptocurrency market bottom is “very likely” in. He also said he is placing a strong bet on the Ethereum ecosystem and on altcoins outperforming Bitcoin.
“Big week upon us,” van de Poppe projected.
Jesse Olson, a technical analyst who focuses on cryptocurrency charts, also pointed to a bullish bottom signal for Bitcoin. Olson said the orange line had crossed above the purple line on his custom Rainbow Moving Average indicator.
The indicator uses multiple layers of moving averages in different colors to identify market trends and possible reversal points. Such signals are typically used as one input among broader market data, including liquidity, positioning and macroeconomic conditions.
“Price was at $16,900 when the cross happened. Weeks later, bull run had begun,” Olson stated. “Few months to go, buy the right dip.”
