The cryptocurrency market is undergoing a broad recovery on Monday after a headwind late last week that saw Bitcoin (BTC) drop to $65,000 on Sunday. Although the crypto king has bounced back above $67,000, it remains below the $70,000 range, which remains a near-term target.
As CoinGecko data shows, market capitalization has increased by 1.6% to $2.41 trillion over the past 24 hours, showing the crypto market’s resilience amid the United States (US) and Israel’s war with Iran.
America-Iran war affected market sentiments
US President Donald Trump has again threatened to attack Iran’s water and energy infrastructure if a deal is not reached to end the war in the Middle East. According to an NBC News report, Trump claimed that “great progress has been made” in talks to reopen the Strait of Hormuz, which has put pressure on global oil supplies for several weeks. However, Iran has said the US proposals are “unrealistic” and “unfair”.
Trump had made it public that his “priority would be to get oil into Iran” and that he was deliberating whether to seize the country’s vital Kharg Islands. Iran has vowed to defend its sovereignty, warning against a ground invasion even as more US troops arrive in the Middle East.
The price of West Texas Intermediate (WTI) crude oil hovered around $100 at the time of writing on Monday, rising from last week’s low of $84.
Sentiment remains quite gloomy across the crypto market, suggesting that the war on risk assets may continue to have an impact. The Fear and Greed Index is in extreme fear territory at 8, matching last week’s level but slightly lower than last month’s 11.
Bitcoin eyes breakout of $70,000
Bitcoin is rising above $67,000 at the time of writing on Monday, but remains within a broader sideways trend, with support around $62,300 and resistance at $76,000. The Relative Strength Index (RSI) is at 44, which is below the neutral line, suggesting subdued bearish momentum rather than a major breakout.
Furthermore, the moving average convergence divergence (MACD) indicator remains below its signal line on the daily chart as the red histogram bars expand, which could lead investors to reduce risk.
Sustained trader interest in
On the downside, the first major support is aligned with the weekly start at $66,011. A close below this demand would expose last week’s low at $65,000, with further downside potentially pushing Bitcoin towards a low of $62,300.
FXT confirms $2.2 billion payment
The FTX Recovery Trust is set to distribute $2.2 billion on Tuesday, marking the fourth round of payments to reimbursed creditors and former customers of the defunct exchange. According to the platform’s asset recovery site, eligible claimants will receive the funds through their chosen provider within one or two business days of disbursement.
According to reports, it allocates 18% to fixed payment dotcom customer claims, 5% to US customer eligibility claims, and 15% to both digital asset loan claims and general unsecured claims. Additionally, 120% has been allocated for facility claims under the full recovery scheme.
By the end of the fourth schedule, $10 billion will be paid to creditors and former customers of FTX. The fifth round is scheduled for May 29. Volatility in the broader crypto market could increase if participants sell assets on crypto exchanges.
Potential supply shock before $94 million token unlock
Several tokens worth about $94 million are expected to be unlocked this week, which could increase volatility. On Monday, the largest releases were River (RIVER), Optimism Foundation (OP), and Zora Protocol (ZORA), with a total of $3.65 million, $3.51 million, and $2.45 million, respectively.
On Tuesday, notable unlocks included Gunz (GUN) worth $1.35 million, and StarkNet Bridge worth $1.23 million. Eigen Cloud and dYdX stand out with tokens worth $6.99 million and $188,428, respectively, among those unlocked on Wednesday.
The biggest unlocks of the week will take place on Thursday, which will include $49.17 million from Sui Foundation, $21 million from Portal and approximately $404,000 from EigenCloud.
There are only two smaller unlocks scheduled for Friday, including Cetus at about $231,000 and Celestia at about $88,000. As of Sunday, Chile will unlock $2.66 million and Celestia will unlock approximately $88,000.
Token unlocks represent predictable supply-side events that often act as scheduled supply shocks, often increasing market volatility. Market participants may engage in anticipatory selling ahead of these unlocks. However, the actual impact remains complex, as the price effect is sometimes partially or completely determined before the event.
