Crypto Pulls Back as Profit-Taking and Middle East Tensions Hit Risk Assets

Crypto markets retreated during Asian and European trading on Monday, reversing part of a bullish weekend move. Bitcoin fell to about $63,100 from above $64,300 at the weekly close, while altcoins saw steeper declines, led by Lighter (LIT), which dropped 8% after a sharp two-month rally.

The pullback matters because it showed crypto trading in line with broader risk assets as geopolitical pressure returned. CoinDesk reported that tensions between Iran and the U.S. over the Strait of Hormuz hit market sentiment, while equity markets also weakened, including a 9.2% drop in South Korea’s Kospi and declines of more than 2% in Japan’s Nikkei and China’s SSE.

Profit-taking also appeared to play a role after bitcoin and the broader crypto market entered the weekend with positive momentum. The move did not point to an outright collapse in positioning, but it did expose how quickly recent gains can be tested when macro and geopolitical risks resurface.

Derivatives activity showed stress concentrated among leveraged traders. Coinglass data cited by CoinDesk showed $253 million in liquidations over 24 hours, with long positions accounting for most of the total. Bitcoin and ether led liquidations by notional value, at roughly $70 million and $60 million respectively.

Still, positioning indicators were not uniformly bearish. Bitcoin open interest remained steady near $17 billion, the three-month annualized basis held around 3.8%, and options positioning stayed tilted toward calls, though demand appeared to have eased from the prior week. A few AI-linked tokens, including FET and NEAR, rose about 1.5% even as much of the market traded lower.