The cryptocurrency market has experienced a sharp recovery, driven by increased diplomatic traffic between the United States and Iran. Bitcoin reached its highest level in the last four weeks, approaching $ 75,000 during the day. This sudden rise in the markets triggered the liquidity of most of the leveraged short positions, especially in futures transactions.
Short positions melted, record liquidations occurred
With the effect of this rise, a total of more than 530 million dollars of leveraged positions were liquidated in the derivative markets in the last 24 hours. Approximately 80 percent of the liquidations were caused by short positions opened in Bitcoin and Ethereum. CryptoAppsy According to data, Bitcoin rose to $ 75,000 at the peak of the day. The value of the total cryptocurrency market reached 2.6 trillion dollars, reaching its highest level in the last month.
CoinGlass data showed that the positions of over 177 thousand investors were liquidated. $425 million of these losses came directly from Bitcoin and Ethereum short transactions. Ethereum reached its highest level since the beginning of February, exceeding $ 2,380 with a 7.5 percent increase.
Evaluating the activity in the global market, Jeff Mei, head of operations of the digital asset exchange BTSE, said: “The expectation that the USA and Iran are close to an agreement supports the markets. Since there is serious economic pressure on the Iranian side, it is likely that there will be progress in the negotiations, and the markets are pricing this in.”
US-Iran tension and its impact on markets
In the background of the latest rise, the steps taken by the USA and Iran to ease tensions stand out. After his country increased its military presence in the Oman Sea, US President Donald Trump stated that the Tehran administration wanted negotiations and that an agreement could be reached on the condition that it prevents it from acquiring nuclear weapons. Since the Iranian economy is largely dependent on oil revenue, any long-term blockade in the region could cause serious economic damage to the country.
However, reservations about the sustainability of the rise in the market also come to the fore. In the evaluation made by Valerius Labs, it was warned that the current rally may be based on the rapid liquidation of short positions, rather than real purchases that will permanently push prices up. In the analysis, it was stated that it is important for the price to remain above the 200-day average for the trend to change in real terms.
Long-term forecasts and strategies of institutions
Speaking at Paris Blockchain Week, Tom Lee, president of Bitmine Immersion Technologies, described the recent correction period as a “mini crypto winter.” Lee specifically stated that Ethereum has the potential to emerge from a long-term consolidation phase. According to him, Ethereum has the structural strength to rise above $60,000 in a few years. Enterprise tokenization projects and progress in artificial intelligence applications will be effective in the growth of Ethereum.
Bitmine announced a loss of $3.82 billion in the last quarter. Almost all of this loss was caused by unrealized value losses in Ethereum. The unit cost of the Ethereums held by the company was $ 3,660; This is well above the current market price of $2,327. Despite this, Bitmine acquired an additional 71,524 ETH on Monday, bringing its total holdings to 4.6 million ETH and thus controlling more than 4 percent of all Ethereum in circulation.
Lee evaluated: “Ethereum will reach a fair course of its value, $ 60,000 levels can be considered in the medium term. Our company maintains its position by believing in this long-term potential.”
On the other hand, experienced trader Peter Brandt, in his analysis published at the end of 2025, highlighted the view that Bitcoin will not reach the $ 200,000 target before the third quarter of 2029. Brandt reminded that serious price corrections were natural in Bitcoin bull markets in the past, and so far there have been withdrawals ranging from 74 to 86 percent in four separate cycles. Still, he argued that he maintained his current position in 40 percent of his portfolio and that the declines made the market healthier.
Digital payments and regulatory pressure: X Money under the magnifying glass
While price movements come to the fore in the markets, regulation discussions in the USA also occupy the agenda. Senator Elizabeth Warren conveyed a number of concerns in a letter regarding possible stablecoin and crypto integrations of Elon Musk’s X Money payment system, which is preparing to be integrated into the X platform. Warren argued that X Money poses potential risks to the financial system and national security.
The main reservation here was about how companies will be allowed to issue their own USD-pegged stablecoins with the GENIUS Act, which comes into force in 2025 and is signed by Trump. Warren specifically referred to X Money’s collaboration with Cross River Bank and questioned whether there was anything against the regulations here.
In addition, Warren stated that she did not find the 6 percent deposit return promise promoted by X Money realistic; because the US Federal Reserve’s target interest rate remains below this. On the subject, FDIC Chairman Travis Hill previously stated that stablecoin deposits within the scope of the GENIUS Act are not under FDIC assurance, but direct insurance is not included in the scope of the ban.
According to experts, this step by Warren is interpreted as a sign that many technology companies will face new regulatory obstacles from Congress while conducting similar stablecoin studies in the coming period.
