Bitcoin and the broader crypto market rose early Monday after Donald Trump announced a five-day delay to planned strikes on Iran’s power infrastructure, briefly easing fears of escalation in the Iran war.
Trump said the U.S. and Iran had engaged in “very good and productive conversations” aimed at resolving tensions in the Middle East, triggering a short-lived risk-on move.
However, that optimism quickly unraveled after Iran’s Fars news agency denied that any such talks had taken place, injecting fresh uncertainty into markets.
Gains fade after early rally
Bitcoin, which had dropped below $68,000 overnight, climbed above $71,000 during early U.S. trading before slipping back toward $70,000 as the conflicting headlines weighed on sentiment.
Altcoins followed a similar path. Ethereum, along with Dogecoin, Solana and Chainlink, rose as much as 5% over the past 24 hours before paring gains.
Macro markets shift
In traditional markets, Gold rebounded from earlier losses and traded near $4,440 per ounce, down about 1% on the day.
The US Dollar Index slipped to around 99.3, while global bond yields declined. The U.S. 10-year Treasury yield fell to roughly 4.3%, reflecting a move toward safer assets.
Oil prices dropped sharply, with WTI crude falling 11% to below $88 per barrel and Brent crude declining about 8% to near $100. On Hyperliquid, tokenized Brent crude futures saw more than $62 million in liquidations, mostly from long positions.
Equities rise, options stay cautious
Crypto-linked stocks moved higher alongside digital assets. Shares of Galaxy Digital gained around 2% in pre-market trading, while Coinbase and IREN also advanced. MicroStrategy rose more than 3%.
Despite the rebound, derivatives markets continue to signal caution. On Deribit, bitcoin put options remain priced at a notable premium to call options through the end of June, indicating persistent demand for downside protection. Ether options reflect a similar defensive stance.
Uncertain outlook
The divergence between the spot rally and defensive positioning in options suggests traders remain skeptical of the move higher.
With geopolitical tensions still unresolved and volatility in oil markets posing broader economic risks, the latest gains appear fragile, leaving markets vulnerable to further swings.
