Crypto Holds Ground as Middle East Risks Offset Inflation Boost

Bitcoin stayed firm near a three-week high, though escalating tensions between the U.S. and Iran capped the upside that followed Tuesday’s softer-than-expected inflation data.

Both bitcoin (BTC) at $65,260 and ether (ETH) traded sideways during Asian and European sessions after rallying on the back of weaker U.S. inflation figures.

Bitcoin remained up over 3% in the past 24 hours but slipped 0.6% since midnight UTC as geopolitical concerns intensified around tanker activity in the Strait of Hormuz. Earlier, it reached a three-week peak near $65,200.

Ether followed a similar pattern, holding gains of about 5% over 24 hours despite a 0.8% pullback since midnight. It climbed to $1,895 on Tuesday, marking its highest level since June 3.

U.S. equity markets also advanced, with Nasdaq 100 futures rising 0.53% and S&P 500 futures up 0.22% during the same period.

Altcoins showed selective strength, with PUMP gaining 8.5% since midnight as investor demand absorbed a token unlock event.

Derivatives positioning
Bitcoin derivatives positioning showed little change. Open interest edged up to $17.3 billion, though the increase was modest. The three-month annualized basis held steady at 3.8%, while funding rates remained between 0% and 8% annualized across exchanges, signaling a continued consolidation phase.

Options markets turned more optimistic, with the 24-hour call-to-put ratio rising to 66/34 from 58/42 previously. The one-week delta skew stayed around 15%. Meanwhile, the at-the-money term structure remained in contango, with short-term implied volatility near 32%–33% and longer-term levels around 42.5% through mid-2027—indicating stable conditions with a slight bullish tilt.

Coinglass data recorded $357 million in liquidations over 24 hours, split 19% long and 81% short. Ethereum led with $132 million in liquidations, followed by bitcoin at $118 million. Binance’s liquidation heatmap highlights $63,500 as a key level to watch if prices decline.

Token trends
CoinMarketCap’s Altcoin Season Index dropped to 46/100 on Wednesday, reflecting the outperformance of bitcoin and ether.

WLFI declined about 1% since midnight, weighing on the index despite broader market strength.

Hyperliquid (HYPE) continued to show momentum, climbing 4% since midnight and extending its upward trend marked by higher highs and higher lows. Its next target is a new all-time high above $78.

In contrast, LIT—HYPE’s competitor—lost momentum after a strong month, gaining just 0.5% as traders began taking profits near its record high of $2.76.

Zcash (ZEC) also stood out, jumping more than 10% over the past day before stabilizing around $557.