Bitcoin price breaks through $70k as the market weighs the possibility of a Middle East ceasefire

Monday, Bitcoin returned above $70,000 for the first time since March 25, as investors weighed reports about Iran seeking a ceasefire amid U.S. President Donald Trump escalating threats and vowing to attack Iran’s civilian infrastructure.

Bitcoin at one point rose more than 3.5%, briefly breaking through $70,200, before giving back part of the gains. At 10:35 a.m. London time, Bitcoin was slightly below $70,000.

The second-largest cryptocurrency, ether, at one point rose 5.1%. According to data from CoinGlass, in the past 24 hours, about $273 million in bearish crypto positions were liquidated.

On Sunday, Trump issued harsher threats on social media, saying Iran would face “hell” if it does not reopen the Strait of Hormuz. Trump hinted that attacks on Iran’s power plants could begin as early as Tuesday if the strait is not opened.

“Many Bitcoin short positions were built over the weekend, and after Trump’s remarks, tensions in the Middle East have risen again,” Damien Loh, chief investment officer at Ericsenz Capital, said. He noted that holiday conditions in Europe and Asia on Monday amplified volatility in a low-liquidity environment. “Bitcoin is no longer a reliable alternative indicator for overall risk appetite. When the market opened today, short positions shifted to stock index futures and some positions covered back, triggering a short-squeeze rally amid insufficient liquidity.”

Axios reported Monday that local mediators have been pushing to reach a 45-day ceasefire agreement.

Oil prices gave back earlier gains, falling to below $108 per barrel. Gold prices rose by about 0.5%, to above $4,700 per ounce. S&P 500 index futures rose by about 0.4%.

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By YuJia Chen