Leading cryptocurrencies plunged on Monday, while stocks extended their rally as President Donald Trump intervened to calm tensions between Israel and Hezbollah in Lebanon.
‘Extreme Fear’ Returns
Bitcoin dived below $71,000 for the first time since mid-April as trading volume jumped 150% over the last 24 hours. Ethereum continued to face stiff resistance at $2,000, as selling pressure intensified.
Over $600 million was liquidated from the cryptocurrency market in the last 24 hours, with $500 million in long positions alone wiped out, according to Coinglass data.
Bitcoin’s open interest rose 043% over the last 24 hours. A drop in price accompanied by an increase in open interest typically indicates a short build-up, meaning that new traders are actively entering the market by selling or shorting the asset.
Market slipped into “Extreme Fear” sentiment, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.43 trillion, following a drop of 2.37% over the last 24 hours.
Stocks Hit New Records
Stocks began the new trading month on a high. The Dow Jones Industrial Average rose 46.42 points, or 0.09%, to end at 51,078.88. The S&P 500 lifted 0.26% to close at 7,599.96, while the tech-heavy Nasdaq Composite added 0.42% to close at 27,086.80. All three indexes ended the day at record highs.
Trump said Israeli Prime Minister Benjamin Netanyahu and Hezbollah have agreed to stop hostilities after Iran Foreign Minister Seyed Abbas Araghchi warned that attacks on Lebanon amount to violation of U.S.-Iran truce.
Why This BTC Cluster Is Critical
Widely followed cryptocurrency analyst and trader Ali Martinez highlighted Bitcoin testing the “critical” $71,300–$73,000 cluster on the daily chart.
“A strong reaction here could send price back to $78,000, while a breakdown may expose $65,000,” Martinez projected.
Michaël van de Poppe, another popular cryptocurrency commentator, mentioned that Ethereum is attracting interest and that they may add some ETH to their portfolio.
“This month is a decisive month with the CLARITY Act vote, and I think it’s providing the ideal ‘Sell the rumor, Buy the News’ type of scenario,” Van De Poppe said.
Photo: KateStock / Shutterstock
