Bitcoin Holds Above Crucial Level as Markets Await Warsh Hearing

Bitcoin is currently trading with a positive trend above the $75,000 threshold, a level previously identified by CoinDesk as crucial for maintaining bullish control. However, some analysts are advising caution, noting that prices must remain above this level through Wednesday, when the US-Iran ceasefire is set to expire. Analysts at Marex warned that the market is pricing in two possible scenarios: an extension and de-escalation of the conflict, or renewed escalation and increased oil prices. "The ceasefire is set to expire on Wednesday evening Washington time, and the market has to price two paths. That is why even with BTC strong, the tape can still gap fast. It is headline risk with a timer," they said in an email to CoinDesk. A potential escalation could drive oil prices above the March high of $119, potentially causing a downturn in Asian and global equity markets. It remains to be seen whether bitcoin will continue to show resilience or come under pressure along with the broader market. As of the time of writing, no Iranian delegation has departed for talks in Pakistan. On Monday, President Donald Trump warned of a significant escalation in the conflict if the ceasefire ends without a deal. Also on the radar of analysts is the nomination hearing of Kevin Warsh for Federal Reserve chair, scheduled for Tuesday. Warsh is known for his hawkish stance on inflation, having opposed interest-rate cuts and quantitative easing following the 2008 crash. His remarks during the session could have a significant impact on the market, particularly if they reinforce expectations of policy easing. "His remarks could act as a near-term catalyst, particularly if they reinforce expectations of policy easing," digital assets trading firm QCP Capital said in a note. In the broader market, major cryptocurrencies such as ether, solana, and XRP have seen gains of less than 2% over the past 24 hours, underperforming bitcoin. Smaller tokens such as XLM and TON have risen by more than 5% each. The CoinDesk Memecoin Index has gained over 3%. Notably, the DeFi Select Index added 2%, despite the industry-wide fallout from the weekend hack of KelpDAO, which saw the attacker drain rsETH, a widely used liquid restaking token. Decentralized lender Aave has been the hardest hit, with the total value of crypto assets locked on its platform falling to $16 billion, down nearly $10 billion since before the hack. Aave's native token, AAVE, has declined 18% to $93 since the hack. At the same time, open interest in futures tied to the token hit a record high of 3.59 million tokens, indicating potential for increased volatility ahead. For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today. For a comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. XRP remains below both its 100-day average and the downtrend line, even as market leaders bitcoin and ether have topped these levels on their respective price charts. Until the price reclaims both the 100-day average and the downtrend line, momentum remains weak compared to BTC and ETH, which have established firmer bullish structures.