bitcoin remained above $76,000 on Monday, rebounding from overnight lows as the broader crypto market remained stable despite war risks with Iran.
The largest cryptocurrency is up around 2.4% in the last 24 hours, recovering from a drop below $74,000 earlier in the session. Ether (ETH), XRP, Solana (SOL), and other major altcoins also mirrored bitcoin’s move, as the broad market CoinDesk 20 rose 1.7%.
This resilience occurs in an unstable macroeconomic context. US President Donald Trump said on Sunday that US forces had shot at and captured an Iranian-flagged cargo ship, warning of further escalation as Tehran refuses to reach a deal. A fragile ceasefire is set to expire at the end of this week.
Oil prices rose 6% to near $90, while the S&P 500 and Nasdaq fell modestly, around 0.3%-0.4%.
Crypto stocks were mixed. Coinbase (COIN) and bitcoin treasury firm Strategy (MSTR) gained about 2%, while Circle (CRCL) and ether treasury Bitmine (BMNR) fell between 1% and 2%.
“The fact that prices have not completely retreated despite the new tensions suggests genuine demand,” said Wintermute trader Jasper De Maere, pointing to recent spot ETF inflows as a supporting factor. Unlike previous rallies this year, he said, the current move appears less driven by leverage.
That said, the path forward remains tied to geopolitics. A new ceasefire could see bitcoin hit $80,000 again, while further rally could keep markets under pressure.
For now, capital continues to focus on large-cap assets like bitcoin, De Maere noted, with riskier altcoins lagging behind, a pattern typical of market environments driven by macroeconomic headlines.
DeFi reels from $292 million KelpDAO hack
Aside from the current price action, tensions remain high in the DeFi sector following the biggest crypto exploit of the year.
The $292 million KelpDAO hack spread across the market as a vulnerability allowed the attacker to drain funds that were then used as collateral across lending protocols.
Because those assets were widely integrated into DeFi, the impact spread quickly, with users rushing to withdraw funds amid fears of insolvency and contagion.
The total value locked (TVL) in DeFi protocols fell by $14 billion in the last two days, according to data from DefiLlama, even as asset prices remained stable.
DeFi TVL fell to around $85 billion, its lowest level in a year and about 50% below October peaks. Aave, the largest lending protocol that was central to the exploit, saw around $10 billion in deposits withdrawn.
“There is a tremendous risk-reward imbalance in DeFi,” said David Shuttleworth of the Anchorage Digital protocol team. “Users will no longer accept the slightly higher (and sometimes lower) rate than the risk-free rate they get when depositing into lending pools,” especially given the latest wave of exploits across protocols.
Read more: ‘DeFi is dead’: Crypto community stirs after this year’s biggest hack exposes risk of contagion
