Bitcoin and the broader crypto market staged a brief rally on Monday after Donald Trump said the U.S. would delay planned strikes on Iran’s power infrastructure for five days, easing immediate fears of escalation in the Iran war.
Trump said in a Truth Social post that both sides had engaged in “very good and productive conversations” aimed at resolving tensions in the Middle East, sparking a short-lived risk-on move across markets.
That optimism quickly faded after Iran’s Fars news agency denied that any talks had taken place, creating confusion and prompting a pullback in prices.
Crypto swings on headlines
Bitcoin, which had fallen below $68,000 overnight, climbed above $71,000 during early U.S. hours before slipping back toward $70,000 as the Iranian response hit markets.
Altcoins mirrored the move. Ethereum, along with Dogecoin, Solana and Chainlink, rose as much as 5% over 24 hours before giving up part of those gains as sentiment cooled.
Broader market moves
In traditional markets, Gold pared earlier losses and traded near $4,440 per ounce, down about 1% on the day.
The US Dollar Index weakened to around 99.3, while global bond yields declined. The U.S. 10-year Treasury yield dropped to roughly 4.3%, reflecting a shift toward safer positioning.
Oil prices also saw sharp declines. WTI crude fell 11% to below $88 per barrel, while Brent crude dropped around 8% to near $100. On Hyperliquid, tokenized Brent crude futures recorded more than $62 million in liquidations, largely driven by long positions.
Crypto stocks and positioning
Crypto-related equities moved higher alongside digital assets. Shares of Galaxy Digital rose around 2% in pre-market trading, while Coinbase and IREN also posted gains. MicroStrategy climbed more than 3%.
Despite the bounce, derivatives markets continue to signal caution. On Deribit, bitcoin put options remain priced at an 8–10 volatility point premium to calls through the end of June, indicating sustained demand for downside protection. Ether options show a similar bias.
Still a cautious market
The divergence between spot price gains and defensive positioning in options suggests traders are not fully convinced by the rally.
With geopolitical uncertainty still high and recent swings in oil markets posing broader economic risks, market participants appear to be treating the rebound as temporary, bracing for potential volatility ahead.
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