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A wave of short liquidations helped propel Bitcoin above $74,000 on Monday, its highest level in roughly six weeks, despite investors’ continued caution over the escalating geopolitical tensions in the Middle East.  The cryptocurrency last traded 3.4 percent higher at $73.4k after reaching as high as $74.4K earlier in the session.

Bitcoin surged 6% despite a decline in global stock markets as worries about inflation were heightened by rising oil prices.

Cryptocurrency markets saw widespread gains as traders rushed to cover their positions after placing bets on further declines. There were approximately $344 million worth of cryptocurrency liquidations over the previous day, with short liquidations making up about 83% of the total.

Leveraged traders are compelled to liquidate their positions when prices move against them, which frequently intensifies market movements. As the Middle East conflict entered its third week, market sentiment remained cautious despite the rebound, raising concerns about the world’s energy supply.

President Donald Trump has urged allies to assist him in securing the crucial Strait of Hormuz, a vital route for international oil shipments.

According to media reports, drone attacks in Gulf states persisted on Monday despite US authorities’ repeated assertions that Iran’s military capabilities had been destroyed. Concerns about supply disruptions near the vital Strait of Hormuz, a crucial shipping route for international crude exports, also kept oil prices above $100 per barrel. In Asian trading on Monday, US stock futures slightly increased as investors anticipated the U.S.

It is generally anticipated that decision-makers will assess inflation risks and maintain current interest rates at the Federal Reserve’s policy meeting later this week. Despite short-term price gains, analysts warned that macroeconomic risks and geopolitical unpredictability could keep cryptocurrency markets volatile in the near future.