Key facts
- Bitcoin fell 1% to $63,100 amid renewed Iran-U.S. tensions.
- Lighter (LIT) experienced an 8% decline after a significant rally.
- Equity markets globally also saw downturns, influenced by geopolitical risks.
- Derivatives markets recorded $253 million in liquidations, predominantly from long positions.
- AI tokens FET and NEAR bucked the trend, showing modest gains.
Cryptocurrencies experienced a pullback on Monday, with Bitcoin falling 1% to $63,100 from above $64,300. The decline was attributed to a combination of profit-taking after a strong bullish week and renewed geopolitical tensions in the Middle East. Iran and the U.S. engaged in airstrikes over the Strait of Hormuz, impacting risk assets across markets.
Altcoins suffered steeper losses, led by Lighter (LIT), which slid 8% following a more than 200% rally over the preceding two months. Equity markets also reflected the risk-off sentiment, with South Korea's Kospi index dropping 9.2%, Japan's Nikkei falling, and China's SSE declining. U.S. equity futures also indicated a lower opening.
Derivatives markets showed $253 million in liquidations over 24 hours, with a significant portion skewed toward long positions. However, broader positioning remained measured, with open interest steady and funding rates generally positive, suggesting no substantial new leverage was added. Options positioning has tilted bullish, though demand for calls is easing.
Despite the broader market downturn, AI tokens such as FET and NEAR showed resilience, each rising by approximately 1.5%. Hyperliquid (HYPE) followed Lighter (LIT) lower, dropping about 3.3%. The "Altcoin Season" indicator rose to 56/100, suggesting increased risk-on sentiment among investors after recent losses. Cardano (ADA) and Solana-based decentralized exchange Jupiter (JUP) have also seen recent volatility and declines.