Bitcoin retreated to $68,589 in Asian hours on Tuesday after Monday’s ceasefire-driven rally faded as US President Donald Trump set a Tuesday night deadline for Iran to accept a deal and threatened to destroy “every bridge in Iran by 12 o’clock tomorrow night” if it does not.
The largest cryptocurrency is down 0.6% over 24 hours after touching $69,350 on Monday, as an Axios report of a potential 45-day truce briefly pushed prices above $69,000. That optimism lasted about 12 hours. Ether fell 1% to $2,104, Solana’s SOL fell 2.7% to $79.75, XRP lost 1.6% to $1.32, and dogecoin fell 2.2% to $0.09. BNB held relatively tight at $598.
The pattern of the past six weeks continued in textbook fashion, with positive headlines briefly boosting prices before negative commentary dampens any chance of an extended recovery.
“This move looks less like a shift in fundamentals and more like positioning being caught offside,” said Diana Pires, Chief Business Officer at sFOX. “Heading into the weekend, sentiment was heavily skewed bearish and short interest had built across the market. Once the truce headlines hit, this positioning had to be wound down.”
Monday’s termination produced $196.7 million in short liquidations as bearish traders were caught off guard by the truce report. Tuesday’s withdrawal came as Iran reportedly handed broker Pakistan a 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.
US crude rose above $112 as Trump warned the military could put all power plants in Iran “out of commission” if no deal is reached, although 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 gain since January despite the whipsaw, with stocks managing to hold on to small gains through volatility.
The macro background remains uncertain. U.S. services data showed the economy grew at a slower pace in March, employment fell at the sharpest rate since 2023 and input prices accelerated, a mix that gives the Fed no clear reason to cut or hold. Key inflation readings this week will add to the picture.
Bitcoin remains within the $65,000 to $73,000 range it has traded in throughout the conflict. Every rally has failed at the upper limit, every sell-off has held the lower. What happens at midnight Tuesday, when Trump’s deadline arrives, will determine which end of that range is tested next.
