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Amid major cryptocurrencies failing to establish a clear direction, the possibility of a Middle East truce has emerged as a key variable for a market rebound. Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) showed stable movements, and investors focused on the progress of Iran-related negotiations.
Benzinga reported on May 21 (local time) that while major cryptocurrencies traded sideways, US stocks saw further gains. Bitcoin failed to maintain its gains above $78,000, and Ethereum's upward momentum halted around $2,150. As of the time of writing, the 24-hour change rates were recorded as Bitcoin -0.76%, Ethereum -0.73%, XRP -0.59%, Solana (SOL) +0.19%, and Dogecoin +0.65%.
According to CoinGlass data, approximately $100 million worth of positions were liquidated in the past 24 hours. The liquidation amounts for long and short positions were similar. Bitcoin's open interest decreased by 2.25% during the same period. However, most retail and whale investors on Binance were found to maintain Bitcoin long positions.
Market sentiment remained subdued. The Crypto Fear & Greed Index pointed to the 'Fear' zone. The global cryptocurrency market capitalization increased by 0.89% in 24 hours, totaling $2.59 trillion.
US stocks closed at record highs. The Dow Jones Industrial Average closed up 276.31 points, or 0.55%, at 50,285.66. The S&P 500 rose 0.17% to 7,445.72, and the Nasdaq Composite Index gained 0.09% to 26,293.10. Investors grew optimistic after President Donald Trump stated that negotiations with Iran were in the "final stages."
CryptoQuant assessed that while Bitcoin miners are reducing their holdings, they are "not aggressively selling" compared to historical averages. CryptoQuant explained that this behavior often appears near market bottoms, but it also indicates that miners do not believe Bitcoin has fully entered a bottoming phase.
Cryptocurrency analyst Michaël van de Poppe said that a Middle East truce could be the "best catalyst" for a cryptocurrency market rally. He believed that a truce could ease macroeconomic burdens, leading to lower oil prices, lower US Treasury yields, and price adjustments for gold and silver. This analysis suggests that such conditions could support an altcoin rebound.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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