Bitcoin and the wider crypto market jumped early Monday after Donald Trump announced a five-day delay to planned strikes on Iran’s power infrastructure, briefly easing fears of further escalation in the Iran war.
In a Truth Social post, Trump said the U.S. and Iran had held “very good and productive conversations” aimed at resolving tensions in the Middle East, triggering a short-lived risk-on rally.
However, the move quickly lost momentum after Iran’s Fars news agency denied that any talks had occurred, casting doubt on the narrative and injecting fresh uncertainty into markets.
Rally reverses
Bitcoin, which had dropped below $68,000 overnight, climbed above $71,000 during early U.S. trading before slipping back toward the $70,000 level following the conflicting reports.
Altcoins followed suit. Ethereum, along with Dogecoin, Solana and Chainlink, rose up to 5% over the past 24 hours before giving back part of those gains as sentiment turned cautious.
Macro reaction
In traditional markets, Gold recovered most of its 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 shift toward defensive positioning.
Oil prices moved sharply lower. WTI crude dropped 11% to below $88 per barrel, while Brent crude declined about 8% to near $100. On Hyperliquid, tokenized Brent crude futures saw more than $62 million in liquidations, with the majority coming from long positions.
Equities and derivatives signal caution
Crypto-linked equities also advanced. Shares of Galaxy Digital rose around 2% in pre-market trading, while Coinbase and IREN gained similar amounts. MicroStrategy added over 3%.
Despite the initial rally, derivatives markets point to continued caution. On Deribit, bitcoin put options remain priced at an 8–10 volatility point premium to calls through the end of June, signaling ongoing demand for downside protection. Ether options reflect a similar trend.
Outlook remains uncertain
The divergence between the spot market bounce and defensive positioning in options suggests traders are skeptical of the move higher.
With geopolitical risks still elevated and volatility in oil markets posing broader economic concerns, the latest rally appears fragile, with market participants bracing for further swings in the days ahead.
