Bitcoin briefly climbed above the $74,000 level on Monday, breaking through a resistance zone that had capped gains several times in recent weeks before slipping slightly below that mark.

The largest cryptocurrency was trading around $74,000 during Monday morning hours, up roughly 2.9% over the past 24 hours and about 9.7% for the week. The broader crypto market also advanced as investors returned to risk assets.

Ethereum led gains among major tokens, rising 7.7% over the past day and 14.3% on the week to roughly $2,261 — its strongest weekly performance in months. Solana followed with a 5.6% daily increase and a 12% weekly gain to about $93.

Other large-cap cryptocurrencies also moved higher. Dogecoin climbed 4.6% to reach $0.10 for the first time since early March, bringing its weekly advance to 10.6%. BNB rose 3.8% to around $683, extending its weekly gain to 9.5%, while XRP gained 4.2% to about $1.47, up 8.9% over the past seven days.

Part of the rally was fueled by a wave of liquidations in derivatives markets. Data from CoinGlass shows about $344 million in total liquidations over the past 24 hours across nearly 92,000 traders. Short positions accounted for around $284.9 million, or roughly 83% of the total.

Short sellers in ether saw the largest losses, with about $127.9 million liquidated, followed by bitcoin at $124.5 million and solana at $18.5 million. The biggest single liquidation was a $6.94 million bitcoin position on Bitfinex.

The imbalance indicates that forced short covering played a role in pushing prices higher, although the broad gains across altcoins and the wider macro backdrop suggest that buying interest extended beyond just a squeeze.

Market sentiment improved following several geopolitical developments. Donald Trump said the United States was in discussions with Iran, although Tehran denied requesting negotiations or a ceasefire. Meanwhile, Abbas Araghchi said the Strait of Hormuz remained closed only to vessels belonging to “enemies,” softening earlier statements that suggested a full closure.

Two tankers carrying liquefied petroleum gas to India also passed through the strait on Sunday, marking the first commercial transit since the conflict began.

Energy markets reflected the shift in tone. Brent crude traded near $104 after previously reaching as high as $106.50 following strikes on Kharg Island, while West Texas Intermediate fell below $100. The U.S. dollar weakened about 0.3%.

Meanwhile, S&P 500 futures rose around 0.5%, setting the index up for its first gain in five sessions, while the MSCI World Index stabilized after several days of declines.

For crypto markets, the combination of easing oil prices, a softer dollar and tentative signs of geopolitical de-escalation has helped improve the macro environment that had weighed on risk assets since the conflict began.

Weekly performance underscores the shift in sentiment. While bitcoin’s roughly 9.7% weekly gain is notable, stronger advances in altcoins suggest investors are beginning to move further along the risk spectrum. Ether outperformed bitcoin by roughly 4.6 percentage points over the week, while solana exceeded it by about 2.3 points.

Attention now turns to the upcoming policy meeting of the Federal Reserve scheduled for March 17–18. Although oil prices remain elevated, signs that the Strait of Hormuz may be reopening could affect inflation expectations.

Investors will be watching the Fed’s updated projections and remarks from Jerome Powell for signals on whether expectations for interest-rate cuts remain intact or face renewed uncertainty.