Crypto markets pushed higher on Tuesday as the U.S. dollar weakened after remarks from Donald Trump suggested the conflict involving Iran could end sooner than expected. Even so, Bitcoin remains within a broader downward trend.
Bitcoin rose about 3.9% since midnight UTC to trade near $71,000, while Ethereum climbed back above the $2,000 level — a price point it had struggled to sustain in recent sessions.
The rally was mirrored across other risk assets. U.S. equities and precious metals also advanced after Trump indicated the war in Iran might conclude “very soon.” At the same time, both the dollar and oil prices retreated, reversing much of last week’s gains.
The U.S. Dollar Index (DXY) briefly touched 99.7 on Monday before pulling back to around 98.5. Because crypto assets often move inversely to the dollar, continued weakness in the index could create conditions for a stronger bitcoin rally later this week.
The conflict in Iran — which now appears likely to be shorter than initially feared — has also highlighted growing resilience in crypto markets. Since tensions escalated, bitcoin has outperformed equities and precious metals, potentially reinforcing its narrative as a hedge during periods of geopolitical uncertainty.
Despite the rebound, the broader technical outlook remains cautious. Bitcoin and the wider crypto market have been trending downward since early October, marked by a series of lower highs and lower lows. For that trend to reverse, bitcoin would likely need to climb back toward the $98,000 level while establishing firmer support along the way.
Derivatives positioning
Derivatives data suggests fresh capital entering the market as prices rise.
Open interest in futures tied to HYPE — one of the best-performing tokens over the past 24 hours — has jumped 14% to $1.41 billion, according to data from Coinglass. Total open interest climbed above 40 million HYPE, though that figure remains close to recent lows.
For both bitcoin and ethereum, futures open interest has increased by more than 5%, outpacing spot price gains. This indicates traders are adding new positions as the rally unfolds.
Meanwhile, futures open interest linked to Tether Gold (XAUT) has continued to decline, dropping below 110,000 XAUT — a sign investors may be rotating capital away from gold-backed assets that recently outperformed.
Perpetual funding rates across most tokens remain slightly positive, pointing to a modest dominance of bullish positioning. However, tokens such as Zcash and Sui still show negative funding rates.
Most major cryptocurrencies — excluding Bitcoin Cash, Monero and Tether Gold — have experienced strong buying activity, reflected in positive open-interest-adjusted cumulative volume deltas.
At the same time, the 30-day implied volatility indices for bitcoin and ethereum — BVIV and EVIV — have fallen by more than 4%, suggesting traders are pricing in less uncertainty after oil slipped back below $100.
However, options data from Deribit shows protective put options remain more expensive than bullish calls across most maturities. Market-maker positioning suggests volatility could spike if bitcoin moves above $75,000.
Block trades in options markets included demand for bitcoin straddles — a strategy that profits from volatility — along with call spreads that reflect bullish expectations. In ethereum markets, traders were actively buying risk reversals.
Token talk
Altcoins also saw notable gains Tuesday. The Jupiter (JUP) token, associated with a Solana-based decentralized exchange, posted a double-digit rise since midnight UTC.
The restaking token Ether.fi (ETHFI) climbed about 6.5%, reaching its highest level since Jan. 29.
Meanwhile, HYPE — the native token of derivatives exchange HyperLiquid — posted only modest gains of roughly 0.5% since midnight. The muted move came despite bullish remarks from Arthur Hayes, founder of BitMEX, who predicted in a blog post Monday that the token could eventually reach $150. HYPE currently trades around $34.8, with most of its recent gains occurring earlier Monday before Trump’s comments.
Among market benchmarks, the bitcoin- and ethereum-heavy CoinDesk 5 (CD5) and CoinDesk 10 (CD10) indexes led the market, each rising about 4.3% over the past 24 hours. The CoinDesk DeFi Select Index (DFX) followed closely with a gain of around 4%.
Memecoins lagged the broader market, with the CoinDesk Memecoin Index (CDMEME) posting the smallest increase after rising roughly 2.6%.
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