Bitcoin is currently trading with a positive outlook above $75,000, a level previously identified by CoinDesk as crucial for bulls to maintain control. However, observers are advising caution as prices must remain above this level through Wednesday, when the US-Iran ceasefire is set to expire. Analysts warn that the market is pricing in two possible paths - extension and de-escalation versus renewed escalation and oil stress - 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 hawkish stance on inflation.
His remarks could have a significant impact on the market, particularly if they reinforce expectations of policy easing. Meanwhile, major cryptocurrencies such as ether, solana, and XRP have seen modest gains of less than 2% over the past 24 hours, underperforming bitcoin. Smaller tokens like XLM and TON have seen more substantial gains of over 5%.
The DeFi Select Index has added 2%, despite the recent hack of KelpDAO, which has had a significant impact on decentralized lender Aave. Aave's native token, AAVE, has declined 18% since the hack, while open interest in futures tied to the token has hit a record high, indicating potential for increased volatility. The price of XRP remains below both its 100-day average and the prolonged bear market trendline, indicating weaker momentum compared to bitcoin and ether.