Leading cryptocurrencies rose alongside stocks on Monday as investors embraced a risk-on mood following the declaration of a peace deal with Iran.
Crypto Market Gains Momentum
Bitcoin extended gains, rising to an intraday high of $67,248 as trading volume jumped 40% over the last 24 hours. Ethereum topped $1.800 while XRP was up 4.5% from the previous day.
Over $480 million was liquidated from the market in the last 24 hours, predominantly in short bets, according to Coinglass data. Notably, more than $300 million in Bitcoin short positions were at risk of liquidation if the apex cryptocurrency rose to $70,000.
Meanwhile, Bitcoin’s open interest rose 2.06% in the last 24 hours, suggesting an influx of new money into the futures market.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.27 trillion, following an increase of 1.59% over the last 24 hours.
Stocks Enter Record Territory
The stock market started the new trading week on a high. The S&P 500 climbed 1.65% to 7,554.29, while the tech-heavy Nasdaq Composite surged 3.07% to close at 26,683.94. The Dow Jones Industrial Average gained 468.77 points, or 0.92%, for a record close of 51,671.03.
The rally followed President Donald Trump’s declaration that the peace deal with Iran is “complete” and that the Strait of Hormuz is open for normal traffic. The deal is due to be signed in Switzerland on June 19.
Pullback: A Long-Term Buying Opportunity?
Widely followed cryptocurrency analyst and trader Michaël van de Poppe said that Bitcoin has entered a zone where one’d want to be accumulating positions “over a longer period.”
“It doesn’t mean we’ll be bottoming out here, but we’re at least close, and the ROI of buying here has historically been incredible,” the analyst said. “That’s primarily why I’m not selling positions and instead want to stick with them as a whole.”
On-chain analytics firm Santiment said the latest rally seems to be driven “as much by expectations as by current fundamentals.”
“If inflation pressures ease and institutional investors finally begin feeling more comfortable themselves, the sharp gains following this announcement may end up looking less like a one-day relief rally and more like the opening chapter of a much larger bull cycle,” the research firm added.
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