Crypto Holds Firm as Middle East Tensions Return to Shake Global Markets

Bitcoin rebounds as crypto shrugs off renewed U.S.-Iran tensions

Bitcoin recovered on Thursday, gaining 1.2% to around $63,000, while Nasdaq futures climbed 2.6% as investors appeared largely unfazed by renewed U.S. military action against Iran. BTC has now gained roughly 9% since the end of June.

The cryptocurrency market recovered from a mid-week slowdown, with Bitcoin rising 1.2% from midnight UTC to reach $63,000. Ethereum also moved higher, adding 0.75% to trade near $1,755.

The rally followed strength in U.S. equity markets, with Nasdaq 100 futures advancing 2.6% over the previous 24 hours despite increasing tensions between Washington and Tehran.

U.S. Central Command confirmed that American forces carried out strikes on 90 military targets in Iran, coming just one day after President Donald Trump announced that the ceasefire agreement had collapsed.

Markets initially reacted negatively to the escalation, but crypto markets quickly recovered. Bitcoin bounced from oversold conditions and continued its strong performance since the start of the month.

Bitcoin is now about 9% above its June closing level, while several altcoins have delivered even stronger gains. Tokens including Light (LIT) and ether.fi (ETHFI) have surged roughly 35% during the same period.

Crypto derivatives market shows caution

The crypto futures market appears to be cooling after recent volatility, with daily trading volume falling nearly 20% to around $191 billion. Open interest remained mostly stable at approximately $106 billion.

Bitcoin’s rebound toward $63,000 was accompanied by a decline in open interest across major USD and USDT-margined futures contracts, falling from 272,000 BTC to 266,000 BTC. The divergence suggests traders are hesitant to add leveraged positions amid uncertain macro conditions.

Similar trends were seen across Ethereum, XRP, and Solana futures markets.

Meanwhile, open interest in Canton Network’s CC token futures increased for the third consecutive day, reaching 271 million tokens — the highest level since May 31. However, the token price continued to decline, suggesting that the rise in futures activity may be driven by increased short positions and bearish bets.

Perpetual futures tied to the S&P 500 index also saw renewed activity, with open interest reaching its highest level since SpaceX began trading on Nasdaq nearly a month ago.

Bitcoin and Ethereum 30-day implied volatility indexes moved lower after a two-day increase, indicating renewed options supply and expectations for calmer market conditions.

On Deribit, BTC and ETH put options remain more expensive than calls across all timeframes, reflecting continued demand for downside protection. This contrasts with Wall Street sentiment, where S&P 500 options markets show record demand for call options, signaling bullish expectations.

Altcoin market activity improves

LIT and ETHFI were among Thursday’s strongest performers, gaining 5.6% and 8.5%, respectively, since midnight UTC and extending their recent rallies.

Ethena (ENA) also showed signs of recovery, climbing 5.6% from Wednesday’s lows. However, the token remains heavily discounted, having lost more than 91% of its value since September 2025 as investors moved away from the yield-focused DeFi platform.

World Liberty Financial’s WLFI token, associated with the Trump family, continued to struggle despite the broader market recovery, falling another 0.5% on Thursday. Like ENA, WLFI remains about 90% below its all-time high.

CoinMarketCap’s Altcoin Season Index increased slightly to 47 out of 100, likely supported by stronger performance from DeFi-related tokens. However, the indicator remains subdued as investors continue waiting for major cryptocurrencies like Bitcoin and Ethereum to show a stronger recovery before becoming more confident in the broader market.

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