Bitcoin Climbs Above $65,000: $312 Million Evaporates Amid Falling Oil Prices
Falling oil prices driven by easing tensions between the US and Iran have boosted risk appetite in the cryptocurrency market, pushing the Bitcoin (BTC) price above $65,000.
The geopolitical de-escalation in the Middle East has created a wave of relief in global markets, with crypto assets making a positive start to the week. As the US and Iran paused mutual attacks, the price of a barrel of Brent oil dropped from the $100 level to around $87. This has eased inflation concerns, leading investors to pivot back toward risk assets.
The leading cryptocurrency Bitcoin (BTC) stabilized around $65,200 after rising as high as $65,600 during the opening of weekend futures trading. Meanwhile, Ethereum (ETH) rose by 0.51% to $1,963, beginning to test the $2,000 psychological threshold for the first time since early June.
Fed Expectations and Liquidation Data
This market recovery has been costly for investors positioned for lower prices. The majority of the $312 million in total liquidations over the last 24 hours came from short positions that failed to anticipate the price surge. On the macro front, the drop in oil prices has weakened the probability of a rate hike at the Fed’s meeting this week. According to CME FedWatch data, the expectation for a rate hike fell from 37.4% to 30.5%.
Derivatives data suggests that optimism in the market continues. Although the amount of open interest in Bitcoin futures pulled back to 740,000 BTC, funding rates and cumulative volume delta (CVD) remain positive. Notably, open interest on the Ethereum side reaching a multi-week peak of 14.66 million ETH indicates that buyers are dominating the market.
Fear Dissipates in the Options Market
The expectation of downside risk is also weakening in the options market. The one-week put-call skew (the price difference between put and call options) for Bitcoin options dropped from 13% to 9%, proving that investor demand for downside protection has decreased. This technical indicator confirms that the selling pressure on the market is easing and investors are focusing on a more optimistic outlook.
In the decentralized finance (DeFi) sector, tokens such as Aave (AAVE) and Lido (LDO) became the day’s standout performers, gaining over 9%. This broad market recovery, combined with the Altcoin Season index rising to 55, shows that investor sentiment is gradually improving.