Bitcoin climbs amid Iran truce discussions, with Algorand extending its rally

Bitcoin approached the $70,000 level as markets responded to signs of easing tensions in the Iran conflict, with a wave of short liquidations exceeding $270 million adding momentum to the move.

Crypto prices advanced alongside equities and futures after an Axios report revealed that the U.S. and Iran are discussing a potential 45-day ceasefire. The prospect of reduced conflict—particularly around the strategically important Strait of Hormuz—helped boost appetite for risk assets, while the U.S. Dollar Index (DXY) moved lower.

Further support came from reports that Pakistan is facilitating negotiations under what’s being dubbed the “Islamabad Accord,” which could lead to an immediate ceasefire and the reopening of key shipping routes. Even so, market participants remain cautious about the durability of these developments.

Prediction market Polymarket shows the odds of a ceasefire this month rising to around 30%, up from 18% before the latest headlines. However, elevated oil prices and expectations that the Federal Reserve will keep rates unchanged continue to limit bullish conviction.

If a ceasefire is confirmed, analysts suggest a broader relief rally could lift risk assets further. For now, traders appear to be treating the news with a degree of skepticism.

Derivatives data points to increasing bullish positioning. Open interest in bitcoin and ether has climbed 7% and 11%, respectively, outpacing spot gains and indicating fresh inflows into leveraged positions. Funding rates and cumulative volume deltas remain positive for both assets.

Altcoins such as Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK) are also seeing double-digit growth in open interest alongside positive funding rates, signaling constructive sentiment. In contrast, Bitcoin Cash (BCH) and HYPE show negative funding rates, reflecting bearish positioning.

Market volatility continues to ease. Bitcoin’s 30-day implied volatility index (BVIV) has dropped below 50% for the first time since early February, while Ether’s EVIV has fallen to recent lows, supporting the ongoing price recovery.

Options markets highlight key price zones. On Deribit, the $60,000 put and $80,000 call for bitcoin each carry roughly $1.4 billion in open interest, making them important levels for downside protection and upside exposure. A move beyond this range could trigger a spike in volatility.

Despite bullish signals in futures, options markets remain cautious. Put options on BTC and ETH continue to trade at a premium to calls, reflecting sustained demand for downside hedging. This skew is partly driven by call overwriting strategies aimed at generating yield.

In token-specific developments, Algorand’s ALGO has gained nearly 50% over the past month after a Google Quantum AI research paper spotlighted its approach to quantum-resistant security.

The report explored how blockchains can defend against potential quantum computing threats that may compromise current encryption systems. Algorand stood out for its use of FALCON, a post-quantum signature scheme selected by the U.S. National Institute of Standards and Technology (NIST).

Already deployed in features such as state proofs and certain transaction types, the technology has drawn renewed attention. ALGO has risen from roughly $0.08 to near $0.12, lifting its market capitalization above $1 billion. The token is also up more than 7% in the past 24 hours, supported by the broader market rally.