Bitcoin briefly surged above $74,000 on Monday, marking its fifth challenge of that resistance level in two weeks before retreating slightly. Alongside bitcoin’s 2.9% gain over 24 hours and 9.7% weekly rise, major altcoins like ether, solana, and cardano saw substantial jumps, with ether climbing 7.7% in a day to $2,261-its strongest weekly performance in recent months. This broad cryptocurrency market upswing coincided with easing geopolitical tensions and softer oil prices, lending renewed optimism to digital asset traders.
More than just a short squeeze, this crypto rally reflected shifting risk sentiment. Data from CoinGlass revealed that $344 million worth of crypto positions were liquidated in the past 24 hours, with shorts accounting for 83% of that total. Ethereum shorts faced the largest blow, losing $127.9 million, followed by bitcoin and solana. The imbalance confirms bears were forced out, but the widespread gains across altcoins suggest investors are growing more confident rather than simply reacting to squeezed sellers.
The catalyst for this uplift was a notable de-escalation surrounding the Strait of Hormuz. Two LPG tankers passed through the waterway for the first time since the outbreak of conflict, and U.S. officials hinted at talks with Iran, though Tehran denied initiating ceasefire negotiations. These developments contributed to oil prices easing from recent highs-Brent crude fell back to around $104 per barrel and WTI dropped under $100-which in turn helped loosen constraints on risk assets, including cryptocurrencies.
Alongside bitcoin’s gains, altcoins outperformed markedly:
- Solana jumped 5.6% on the day to $93
- Dogecoin surpassed $0.10 for the first time since early March
- BNB gained 3.8%
- XRP rose 4.2%
This rotation toward riskier assets beyond bitcoin signals that investors are venturing further down the market’s risk curve, a promising sign of revived appetite after months of war-induced uncertainty.
This shift in sentiment arrives ahead of the Federal Reserve’s meeting on March 17-18, where investors will closely watch for cues on interest rates. The apparent calming around the Strait of Hormuz changes the inflation outlook tied to oil supply fears. How Fed Chair Jerome Powell’s comments and the updated economic projections address these new dynamics could determine whether markets maintain hopes for rate cuts or face disappointment.
XRP broke through a key resistance level around $1.426, climbing to $1.47 on a volume surge exceeding 250%. This breakout has shifted momentum in favor of buyers and heightened attention on whether XRP can maintain support near $1.43 to $1.44. Holding that ground could pave the way for a push toward $1.50 or higher, while falling back might lead to a dip near $1.39. The token’s renewed activity coincides with growing engagement on the XRP Ledger and expanding tokenized real-world assets.
Overall, the combination of easing regional tensions, softer energy prices, and a weaker dollar has injected fresh life into cryptocurrency markets. After a harsh period of uncertainty linked to global conflict, the rebound is a reminder of how sensitive digital assets remain to macroeconomic and geopolitical shifts, especially those influencing liquidity and risk appetite.