Bitcoin flashed above $74,000 on Monday before easing back under the key resistance level it had failed to clear four times in the past two weeks. The largest crypto was trading just above $74,000 in early U.S. hours, up 2.9% on the day and 9.7% for the week.
Altcoins led the charge. Ether climbed 7.7% in 24 hours to $2,261 — a 14.3% weekly gain and its strongest weekly performance in months. Solana gained 5.6% on the day and 12% for the week to $93. Dogecoin pierced $0.10 for the first time since early March, rising 4.6% on the day and 10.6% weekly. BNB and XRP also posted strong moves, with BNB up 3.8% to $683 (9.5% weekly) and XRP up 4.2% to $1.47 (8.9% weekly).
A short squeeze helped power the rally. CoinGlass reports roughly $344 million in liquidations across 91,978 traders over the past 24 hours, with short positions accounting for about $284.9 million — roughly 83% of the total. Ether shorts were hit hardest ($127.9 million), followed by bitcoin ($124.5 million) and solana ($18.5 million). The single largest liquidation was a $6.94 million BTC position on Bitfinex. While the skew toward short liquidations shows forced buying played a major role, the breadth of altcoin strength and the macro backdrop point to more than just a squeeze.
Markets were reacting to an abrupt shift in geopolitical tone. President Trump said the U.S. was talking to Iran, a claim Tehran denied, and Iranian Foreign Minister Abbas Araghchi softened language on the Strait of Hormuz, saying it was closed only to “enemies” rather than a blanket shutdown. Two LPG tankers bound for India transited the strait on Sunday — the first commercial passage since the conflict flared — a sign markets took as de-escalation.
That shift pulled oil off its recent highs: Brent traded around $104 after earlier spiking to $106.50 following strikes on Kharg Island, and WTI slipped below $100. The dollar weakened about 0.3%, S&P 500 futures rose 0.5% (on track for their first gain in five sessions), and MSCI’s global equity gauge steadied after three down days. For crypto, easing oil, a softer dollar and even tentative geopolitical calm can unclog the liquidity squeeze that has suppressed risk assets since the conflict began.
Weekly performance is notable — the best for many tokens since before the war. Bitcoin’s nearly 10% weekly gain is meaningful, but the stronger altcoin returns are the real signal: ether outperformed bitcoin by 4.6 percentage points and solana by 2.3 points on the week, indicating capital is rotating back down the risk curve rather than sheltering in bitcoin alone.
Looking ahead, the Fed meeting on March 17-18 arrives with a different backdrop than a week ago. Oil remains elevated, but signs of reopening in the Strait of Hormuz could temper inflationary pressure. Markets will be watching the Fed’s dot plot and Chair Powell’s press conference closely to see whether hopes for rate cuts hold or get pushed aside.
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