Leading cryptocurrencies pared losses Monday, while stocks closed higher as investors priced in a further easing of tensions between the U.S. and Iran following weekend hostilities.
Crypto Market Recoups Losses
Bitcoin rose in the early trading hours, but failed to cross the $61,000 barrier. Trading volume surged 82% over the last 24 hours. Ethereum rallied in the afternoon, hitting a high of $1,633 intraday before slipping back below $1,600.
Over $300 million was liquidated from the cryptocurrency market in the last 24 hours, with short traders facing the majority of the losses, according to Coinglass data
Bitcoin’s open interest increased modestly by 0.80% over the last 24 hours. Interestingly, retail and whale derivatives traders on Binance lowered their long positions in the leading cryptocurrency.
“Extreme Fear” sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.2 trillion, following a dip of 0.79% over the last 24 hours.
Stocks Rally Ahead Of Doha Meeting
Stocks started the new trading week on a high. The Dow Jones Industrial Average rallied 306.63 points, or 0.59%, ending at 52,182.74. The S&P 500 lifted 1.18% to close at 7,440.43, while the tech-heavy Nasdaq Composite rose 2.07% to settle at 25,820.14.
President Donald Trump said that a meeting with Iran is scheduled for Tuesday in Doha, Qatar. The discussions are reportedly aimed at managing the Strait of Hormuz and reducing tensions after weekend exchanges of attacks between the two sides.
Where Is Bitcoin Headed?
On-chain analytics firm CryptoQuant noted that Bitcoin’s Long Term Holder Spent Output Profit Ratio was approaching 1—a historically rare condition that has marked “generational buying opportunities.”
The metric is used to determine whether investors who have held their Bitcoin for more than 155 days are selling at an aggregate profit or loss. The current reading indicates long-term holders are moving coins at or near a loss.
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said that Bitcoin has started the week well, forecasting a “very likely” breakout above $61,000.
“The bullish divergences are still applicable here, indicating that there’s the upside ready to come,” Van De Poppe said.
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