Bitcoin surges past $74K, reaching a six-week high as short liquidations fuel rally.

Bitcoin climbed above $74,000 on Monday, reaching its highest level in roughly six weeks as a wave of short liquidations supported the rally, although investors stayed cautious amid rising geopolitical tensions in the Middle East.

The largest cryptocurrency was last up 3.4% at $73,892.4 by 02:21 ET (06:21 GMT), after touching an intraday high of $74,336.9 earlier in the session.

Bitcoin gained about 6% last week even as global equity markets declined, with surging oil prices fueling concerns about inflation.

Crypto rallies on short liquidations

Cryptocurrency markets posted broad gains as traders who had bet on further price declines rushed to close their short positions.

Data from CoinGlass showed about $344 million in crypto liquidations over the past 24 hours, with short positions making up roughly 83% of the total.

Liquidations occur when leveraged traders are forced to close their positions after prices move against them, often intensifying price swings.

Despite the rebound, sentiment remained cautious as the conflict in the Middle East entered its third week, raising worries about global energy supply and inflation pressures.

Donald Trump, the U.S. president, has urged allies to help safeguard the Strait of Hormuz, a critical route for global oil shipments, as hostilities in the region continue.

Oil stays above $100 amid Iran war concerns

Reports indicated that despite repeated statements from U.S. officials claiming Iran’s military capabilities had been destroyed, drone attacks continued in Gulf states on Monday.

Oil prices remained supported above $100 per barrel amid fears of potential supply disruptions around the Strait of Hormuz, a key shipping route for global crude exports.

U.S. stock futures moved slightly higher in Asian trading on Monday as investors looked ahead to the upcoming policy meeting of the Federal Reserve, where policymakers are widely expected to keep interest rates unchanged while evaluating inflation risks.

Analysts noted that geopolitical uncertainty and broader macroeconomic risks could keep cryptocurrency markets volatile in the near term, even as short covering supports prices.

Crypto price today: altcoins surge, Ether jumps 8%

Most altcoins advanced on Monday as the broader crypto market recovered.

The world’s second-largest cryptocurrency, Ethereum, rose 8% to $2,265.88.

The third-largest token, XRP, fell 5% to $1.48.

Solana and Polygon both climbed about 6%, while Cardano surged nearly 10%.

Among meme coins, Dogecoin gained around 7%.

Sources: Ayushman Ojha