The crypto market wavered on Monday morning as investors embraced a risk-on sentiment amid hopes of a deal between the US and Iran. Bitcoin (BTC) price was held below $77,000, while the market capitalization of all tokens remained flat at $2.56 trillion.
Some tokens, however, continued their uptrend that started on Saturday. DeXe token jumped by over 24%, while Humanity Protocol (H), Venice Token (VVV), Morpho (MORPHO), and Ondo rose by over 5% in the last 24 hours.
Top crypto gainers today | Source: CMCCrypto market waits for US-Iran deal
Bitcoin and most altcoins rebounded on Saturday after President Trump announced that the US and Iran were working on a deal to reopen the Strait of Hormuz. Media reports suggest that the deal will see the US end its blockade against Iranian ports in exchange for Iran reopening the Strait.
The reports also suggest that the two countries will start a 60-day ceasefire, in which they will seek to find an agreement on its nuclear program. These reports, if confirmed, would be positive for the crypto market as they would lead to lower energy prices and inflationary pressures.
Indeed, data shows that the Brent and West Texas Intermediate (WTI) tumbled below $100 today. This sell-off started as soon as Trump made the announcement, with traders on platforms like Hyperliquid experiencing the most benefits.
Still, the crypto market action has been a bit muted because Trump is yet to announce the deal. He has also said that he will not be in a hurry to reach an agreement, raising concerns that things might go south. Besides, some of Trumps closest allies, like Senator Lindsey Graham and Ted Cruz, have all blasted the deal for empowering Iran.
Most importantly, Trump is known to change his mind based on the last person he talks to. As such, traders are likely waiting for him to announce the deal officially.
Liquidations plunge as futures open interest eases
The crypto market is also on edge amid falling volume and futures open interest. Data shows that the 24-hour volume dropped by 22% to $60 billion, the lowest figure in months.
At the same time, the futures open interest dropped by over 1.1% in the last 24 hours to $124 billion. Bitcoin‘s open interest dropped by 1.75% in the last 24 hours, while Ethereum’s OI fell by 1.30%. Some of the top tokens that experienced a surge in OI were Hyperliquid (HYPE), Zcash (ZEC), and Binance Coin (BNB).
The volume will likely be limited on Monday because of the US and UK public holidays. The US is celebrating the Memorial Day weekend, while the UK has a bank holiday.
Liquidations also plunged in the last 24 hours. It dropped by 70% tp $221 million, with bullish positions worth of Ethereum and Bitcoin worth $70 million and $58 million being liquidated. Liquidations happen when exchanges shut down loss-making leveraged positions to protect their capital.
Looking ahead, the crypto market will react to the upcoming macro data from the US, including consumer confidence on Tuesday, and PCE and GDP reports on Thursday. These are important numbers that will have an impact on the Federal Reserve.