Bitcoin experienced a sharp 5-6% price surge on Monday, climbing from weekend lows near $63,000 to an intraday peak of $69,615, bringing it close to the psychologically important $70,000 resistance level. The rally triggered significant liquidations in the derivatives market, with approximately $80 million worth of short positions being wiped out in mere minutes, according to CoinGecko data. The Bybit exchange accounted for the largest share of these liquidations, roughly 20%.
The price movement occurred against a backdrop of heightened geopolitical volatility. Over the weekend, Bitcoin faced selling pressure following a U.S. announcement of a bombing campaign against Iran. However, a cautious recovery in risk appetite emerged after news broke of the assassination of Iran's religious leader, Ayatollah Ali Khamenei. Crypto assets, trading 24/7, reacted instantly to these developments.
Market analyst Tom Lee of Fundstrat appeared on CNBC, suggesting the crypto sector is in the final stages of setting a bottom and could rally in April. The broader cryptocurrency market followed Bitcoin's lead, with Ethereum (ETH) gaining over 6% to reach $2,070, and lower-liquidity altcoins also moving upward.
In a related development, shares of MicroStrategy (MSTR), a major corporate holder of Bitcoin, surged by more than $139. The company recently purchased an additional $204 million worth of BTC. The overall crypto market saw $465 million in liquidations over the past 24 hours, with $234 million of that from long positions.
While the surge is significant, Bitcoin has faced repeated failures in its previous attempts to reclaim the $70,000 level. Analysts note that if Bitcoin can technically surpass this threshold, it could gain new momentum. However, ongoing geopolitical developments in the Middle East, which have driven up oil prices and inflation concerns, are expected to keep market volatility high in the short term.
