Bitcoin Surges Above $76,000 Amid DeFi's $14 Billion Exodus Following KelpDAO Breach

On Monday, the price of Bitcoin (BTC) $78,118.05 remained above $76,000, rebounding from its overnight lows as the broader cryptocurrency market demonstrated resilience despite the risks associated with the Iran conflict. Over the past 24 hours, the largest cryptocurrency experienced a 2.4% increase, recovering from a dip below $74,000 earlier in the session. Other prominent altcoins, including Ether (ETH), XRP, and Solana (SOL), mirrored Bitcoin's movement, with the CoinDesk 20 index rising by 1.7%. This stability occurs against a backdrop of macroeconomic uncertainty. On Sunday, U.S. President Donald Trump announced that American forces had engaged with and seized an Iranian-flagged cargo ship, warning of potential further escalation if Tehran refuses to negotiate a deal. A fragile ceasefire is set to expire later this week. Oil prices surged 6% to nearly $90, while the S&P 500 and Nasdaq experienced modest declines of around 0.3%-0.4%. The performance of crypto equities was mixed, with Coinbase (COIN) and the Bitcoin treasury firm Strategy (MSTR) gaining roughly 2%, while Circle (CRCL) and the ether treasury Bitmine (BMNR) edged lower by 1%-2%. According to Jasper De Maere, a trader at Wintermute, 'The fact that prices have not fully retraced despite new tensions suggests some genuine demand,' citing recent spot ETF inflows as a supporting factor. Unlike earlier rallies this year, he noted that the current move appears less driven by leverage. However, the path forward remains closely tied to geopolitical developments. A renewed ceasefire could push Bitcoin back toward $80,000, while further escalation may keep markets under pressure. For now, capital continues to concentrate in large-cap assets like Bitcoin, De Maere observed, with riskier altcoins lagging, a pattern typical of market environments driven by macro headlines. DeFi reels from the $292 million KelpDAO hack Beyond the current price action, tensions remain high in the DeFi sector following the biggest crypto exploit of the year. The $292 million KelpDAO hack had a cascading effect across the market, as a vulnerability allowed the attacker to drain funds that were then used as collateral across lending protocols. Because those assets were widely integrated into DeFi, the impact quickly spread, with users rushing to withdraw funds amid fears of bad debt and contagion. According to DefiLlama data, the total value locked (TVL) across DeFi protocols fell by $14 billion over the past two days, even as asset prices remained steady. DeFi TVL dropped to approximately $85 billion, its lowest level in a year and roughly 50% below October peaks. Aave, the largest lending protocol central to the exploit, saw around $10 billion in deposits withdrawn. 'There’s a tremendous risk-reward imbalance in DeFi,' said David Shuttleworth from Anchorage Digital's protocol team. 'Users will no longer accept the slightly higher (and sometimes lower) than risk-free rate they get by depositing in lending pools,' especially given the latest wave of exploits across protocols.