Crypto markets moved higher Tuesday as the U.S. dollar weakened after comments from Donald Trump suggested the conflict involving Iran could end sooner than expected. Even so, Bitcoin remains within a broader downward trend.
Bitcoin gained roughly 3.9% since midnight UTC, trading near $71,000, while Ethereum climbed back above the $2,000 level — a price point it had recently struggled to reclaim.
The rally wasn’t limited to digital assets. U.S. equities and precious metals also advanced after Trump said the war in Iran could conclude “very soon.” Meanwhile, both the dollar and oil prices pulled back, surrendering much of the strength they recorded over the past week.
The U.S. Dollar Index (DXY) briefly rose to 99.7 on Monday before slipping to around 98.5. Because cryptocurrencies often move inversely to the dollar, continued weakness in the index could support further upside for bitcoin in the coming days.
The conflict in Iran — which now appears likely to be shorter than many initially feared — has also revealed growing resilience in crypto markets. Since tensions escalated, bitcoin has outperformed both equities and precious metals, potentially reinforcing its reputation as a hedge during periods of geopolitical uncertainty.
Despite the rebound, the broader technical picture remains cautious. Bitcoin and the wider crypto market have been trending downward since early October, characterized by a pattern of lower highs and lower lows. To reverse that trend, bitcoin would likely need to push toward the $98,000 level while establishing stronger support levels along the way.
Derivatives positioning
Data from derivatives markets indicates fresh capital entering the space as prices rise.
Open interest in futures tied to HYPE — one of the strongest-performing tokens over the past 24 hours — has climbed 14% to $1.41 billion, according to data from Coinglass. Total open interest exceeded 40 million HYPE, though it still remains close to recent lows.
For both bitcoin and ethereum, futures open interest has increased by more than 5%, outpacing gains in spot prices — a signal that traders are adding new positions as the rally unfolds.
Meanwhile, futures open interest linked to Tether Gold (XAUT) has continued to fall, slipping below 110,000 XAUT. The decline suggests investors may be rotating funds away from gold-linked assets that recently outperformed.
Perpetual funding rates across most tokens remain slightly positive, indicating a modest bias toward 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 pressure, 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 dropped by more than 4%, suggesting traders are pricing in less uncertainty following oil’s decline below $100.
However, options data from Deribit shows protective put options remain more expensive than bullish call options across most maturities. Market-maker positioning indicates volatility could increase significantly if bitcoin moves above $75,000.
Recent block trades have included demand for bitcoin straddles — a strategy that profits from volatility — along with call spreads that signal bullish positioning. In ethereum markets, traders have been actively buying risk reversals.
Token talk
Altcoins also posted solid gains Tuesday. The Jupiter (JUP) token, linked to a Solana-based decentralized exchange, recorded a double-digit rise since midnight UTC.
The restaking token Ether.fi (ETHFI) advanced about 6.5%, reaching its highest level since Jan. 29.
Meanwhile, HYPE — the native token of derivatives exchange HyperLiquid — posted a more modest move, gaining roughly 0.5% since midnight. The subdued performance 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 performance, each rising about 4.3% over the past 24 hours. The CoinDesk DeFi Select Index (DFX) followed closely with a gain of roughly 4%.
Memecoins lagged behind the broader market, with the CoinDesk Memecoin Index (CDMEME) posting the smallest advance after rising around 2.6%.
