Bitcoin is currently trading at $77,116.62 with a positive outlook, surpassing the critical $75,000 threshold that is essential for bulls to maintain their position. However, analysts are advising caution as prices must remain above this level through Wednesday, when the US-Iran ceasefire is set to expire. Analysts at Marex warn that the market must consider two possible paths - extension and de-escalation or renewed escalation and oil price increases, which could lead to significant market fluctuations. The situation is further complicated by the upcoming nomination hearing for Federal Reserve chair, Kevin Warsh, known for his 'inflation hawk' stance, which could impact market expectations.
Major cryptocurrencies such as ether, solana, and XRP have shown modest gains of less than 2% over the past 24 hours, while smaller tokens have seen increases of over 5%. The DeFi Select Index has added 2%, despite the recent hack of KelpDAO, which has affected decentralized lender Aave, with its native token AAVE declining 18% since the hack. Aave's total value of locked crypto assets has fallen to $16 billion, down nearly $10 billion.
The demand for leveraged bets on AAVE has reached a record high, indicating potential volatility ahead.