Bitcoin retreated to $68,589 in Asian hours on Tuesday after Monday’s ceasefire-fueled rally fizzled out, as US President Donald Trump set a Tuesday night deadline for Iran to accept a deal and threatened to destroy “all the bridges in Iran at 12 o’clock tomorrow night” if it didn’t.
The largest cryptocurrency is down 0.6% in 24 hours after hitting $69,350 on Monday, when an Axios report on a possible 45-day ceasefire briefly pushed prices above $69,000. That optimism lasted 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 fell 2.2% to $0.09. BNB remained relatively stable at $598.
The pattern of the past six weeks continued in textbook fashion, where positive headlines briefly boost prices before negative commentary eliminates any chance of a prolonged rally.
“This move looks less like a change in fundamentals and more like positioning getting caught offside,” said Diana Pires, chief commercial officer at sFOX. “Heading into the weekend, sentiment was heavily skewed to the downside and short interest had built up across the market. Once the ceasefire headlines came out, that positioning had to change.”
Monday’s bounce produced $196.7 million in short liquidations as bearish traders were caught out by the ceasefire report. Tuesday’s withdrawal came as Iran reportedly conveyed to mediator Pakistan a rejection of the ceasefire proposal, demanding a permanent end to the war, the lifting of sanctions and reconstruction efforts, as well as safe passage through Hormuz.
U.S. crude rose above $112 as Trump warned the military could “shut down” all power plants in Iran if a deal is not reached, even as he said talks 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 shakeout, and stocks managed 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 shrank at the fastest pace since 2023 and input prices accelerated, a combination that gives the Federal Reserve no clear reason to cut or maintain. This week’s key inflation readings will add to the picture.
Bitcoin remains within the $65,000 to $73,000 range where it has traded throughout the conflict. Every rally has failed at the upper limit, every sell-off has remained at the lower limit. What happens at midnight Tuesday, when Trump’s deadline arrives, will determine which end of that range will be tested next.
