Bitcoin is currently trading with a positive trend above the $75,000 mark, a level previously identified by CoinDesk as crucial for bulls to maintain their grip on the market. However, some observers are advising caution, noting that prices must remain above this threshold through Wednesday, when the U.S.-Iran ceasefire is set to expire.
Analysts at Marex emphasized that the market must consider two possible paths: an extension and de-escalation of the conflict, or a renewed escalation that could lead to higher oil prices and negatively impact Asian and global equity markets. The question remains whether bitcoin will continue to show resilience or succumb to pressure along with the broader market. As of now, no Iranian delegation has departed for talks in Pakistan, and President Donald Trump has warned of a potential escalation if the ceasefire ends without an agreement.
Kevin Warsh's nomination hearing for Federal Reserve chair is also on the radar for Tuesday, with his reputation as an 'inflation hawk' who opposed interest-rate cuts and quantitative easing following the 2008 crash. His remarks could serve as a near-term catalyst, particularly if they reinforce expectations of policy easing, according to QCP Capital. In the broader market, major cryptocurrencies like ether, solana, and XRP have seen minimal gains of less than 2% over the past 24 hours, underperforming bitcoin.
Meanwhile, smaller tokens such as XLM and TON have risen by more than 5% each, and the CoinDesk Memecoin Index is up 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 taken a significant 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, while open interest in futures tied to the token hit a record high, pointing to potential volatility ahead.