Bitcoin returned to $68,589 in Asian hours on Tuesday following the end of Monday’s ceasefire-motivated rally, as US President Donald Trump set a Tuesday evening deadline for Iran to accept a deal and threatened to destroy “every bridge in Iran by 12 o’clock tomorrow night” if it did not do so.
The largest cryptocurrency is down 0.6% over 24 hours after hitting $69,350 on Monday, when an Axios report on a potential 45-day ceasefire briefly pushed prices above $69,000. This optimism lasted for about 12 hours. Ether fell 1% to $2,104, Solana SOL fell 2.7% to $79.75, XRP lost 1.6% to $1.32 and dogecoin slipped 2.2% to $0.09. BNB remained relatively stable at $598.
The pattern of the past six weeks has continued in textbook fashion, where positive headlines briefly drive prices higher before negative commentary wipes out any chance of a prolonged recovery.
“This move feels less like a change in fundamentals and more like an offside positioning,” said Diana Pires, sFOX’s chief commercial officer. “Going into the weekend, sentiment was strongly bearish and short interest had built up in the market. Once the ceasefire headlines hit the headlines, this positioning had to unravel.”
Monday’s rebound produced $196.7 million in short-term selloffs as bearish traders got caught up in the ceasefire report. Tuesday’s withdrawal came as Iran reportedly conveyed to the Pakistani mediator its rejection of the ceasefire proposal, demanding a permanent end to the war, lifting of sanctions and reconstruction efforts in addition to safe passage through Hormuz.
U.S. crude soared above $112 as Trump warned the military could knock all of Iran’s power plants “out of service” if no deal was reached, even as he said negotiations were “going well.” Brent traded near $115.66, up 2.9% on the session. Elsewhere, the S&P 500 posted its longest advance since January despite the downturn, with stocks managing to hold on to small gains despite the volatility.
The macroeconomic context remains uncertain. U.S. services data showed the economy expanded at a slower pace in March, employment contracted at the sharpest pace since 2023 and input prices accelerated, a combination that gives the Fed no clear reason to cut or hold rates. This week’s main inflation figures will enrich the picture.
Bitcoin remains in the $65,000 to $73,000 range it has been trading in throughout the conflict. Every rally failed at the upper limit, every selloff held the lower limit. What happens at midnight Tuesday, when Trump’s deadline arrives, will determine which end of that range will be tested next.
