Bitcoin gave back its early-week gains, falling to as low as $68,589 during Tuesday’s Asian trading. The cryptocurrency’s temporary rally faded after a series of statements from U.S. President Donald Trump, who issued an ultimatum to Iran, demanding it agree to a deal by Tuesday night or face strikes on its infrastructure.
Current market prices and recent developments in crypto
On Monday, Bitcoin briefly spiked to $69,350 after news of a possible ceasefire, but optimism subsided rapidly and the cryptocurrency ended the day down 0.6%. Ether slid to $2,104, while Solana dropped 2.7% to $79.75. XRP lost 1.6% to settle at $1.32 and Dogecoin fell 2.2% to $0.09. BNB remained flat around the $598 mark.
For the past six weeks, the crypto market has been gripped by similar short-term swings, with positive headlines sparking brief rallies and negative news quickly curbing the momentum. This seesaw movement has made sustained recoveries increasingly elusive.
Diana Pires, director of business development at sFOX, observed that while there have been no significant changes in fundamental indicators, market sentiment has shifted toward expecting a decline. She noted that the ceasefire news prompted a rush to close short positions, contributing to volatility.
After the surge triggered by ceasefire reports, the abating expectations of a market drop led to a rapid closure of positions, Pires said.
Monday’s abrupt upswing forced the liquidation of $196.7 million in short positions, as investors scrambled to react. On Tuesday, reports indicated that Iran, via Pakistan, rejected the ceasefire offer, demanding instead the removal of sanctions, a permanent end to conflict, and reconstruction guarantees.
Ongoing uncertainty in the macroeconomic environment
Meanwhile, geopolitical risks and fresh remarks from Trump pushed oil prices higher. U.S. crude surpassed $112 per barrel, and Brent rose 2.9% to near $115.66. Despite volatility, the S&P 500 managed to log its longest rally since January, reflecting resilience in U.S. equities despite global jitters.
Macroeconomic data remains mixed and uncertain. In March, U.S. service sector growth slowed and new employment saw the sharpest contraction in a year, even as cost pressures accelerated. This ambiguous backdrop leaves the Federal Reserve’s next interest rate move unclear, and inflation readings due later this week are likely to weigh on market direction.
Bitcoin continues to fluctuate between $65,000 and $73,000—the same range observed since the onset of the recent crisis. Resistance at the upper limit has capped any further gains, while support at the lower end has prevented deeper declines. As the deadline set by Trump approaches, market participants are watching closely to see which way Bitcoin will break from this band.
