Crypto markets recover as Bitcoin holds steady despite renewed U.S.-Iran tensions
Bitcoin regained momentum on Thursday, rising 1.2% to around $63,000, while Nasdaq 100 futures jumped 2.6% as investors appeared to look past the latest escalation in U.S.-Iran tensions. BTC is now up roughly 9% compared with its June month-end level.
The cryptocurrency market bounced back after a brief mid-week slowdown, with Bitcoin advancing 1.2% from midnight UTC and Ethereum gaining 0.75% to trade near $1,755.
The recovery followed broader strength in U.S. markets, where Nasdaq 100 futures moved higher despite the worsening geopolitical situation between the U.S. and Iran.
U.S. Central Command confirmed that American forces conducted strikes on 90 military targets in Iran, coming shortly after President Donald Trump said the previous ceasefire agreement had fallen apart.
Although risk assets initially sold off following the news, crypto markets quickly stabilized. Bitcoin rebounded from oversold conditions and continued the upward trend it has maintained since the beginning of July.
BTC is currently about 9% higher than its June close, while several alternative cryptocurrencies have delivered even stronger gains. LIT and ETHFI have both climbed approximately 35% during the same period.
Futures market signals cautious investor positioning
Crypto derivatives activity has slowed as traders remain cautious following recent market volatility. Total 24-hour futures volume dropped nearly 20% to about $191 billion, while open interest remained close to $106 billion.
Bitcoin’s recovery toward $63,000 came alongside a decline in open positions across major USD- and USDT-based futures contracts, falling from 272,000 BTC to 266,000 BTC. The combination of rising prices and falling open interest suggests investors are limiting leverage exposure amid uncertain macroeconomic conditions.
Similar declines in futures positioning were seen across Ethereum, XRP, and Solana markets.
Meanwhile, open interest for Canton Network’s CC token futures continued increasing for a third consecutive day, reaching 271 million tokens — the highest level since May 31. However, the token price continued weakening, suggesting that much of the increased activity may be linked to traders building bearish short positions.
Perpetual futures connected to the S&P 500 also saw renewed demand, with open interest reaching its highest point since SpaceX’s Nasdaq debut nearly a month ago.
Bitcoin and Ethereum’s 30-day implied volatility measures declined after two days of gains, pointing to renewed options supply and expectations for more stable market conditions.
On Deribit, traders continue paying higher premiums for BTC and ETH put options compared with calls across all maturities, highlighting ongoing demand for downside protection. In contrast, equity markets are showing a more optimistic outlook, with S&P 500 options displaying record demand for bullish call positions.
Altcoins continue outperforming
LIT and ETHFI remained among the strongest-performing tokens on Thursday, gaining 5.6% and 8.5%, respectively, since the start of the UTC session and extending their recent rallies.
Ethena’s ENA token also recovered, rising 5.6% from Wednesday’s lows. However, the token remains heavily below its peak, down more than 91% since September 2025 as investors reduced exposure to the yield-focused DeFi platform.
WLFI, the token associated with World Liberty Financial and linked to the Trump family, failed to benefit from the broader market rebound, slipping another 0.5% on Thursday. The token remains around 90% below its all-time high.
CoinMarketCap’s Altcoin Season Index increased slightly to 47 out of 100, supported by stronger performance from DeFi tokens. Still, the indicator remains neutral as investors wait for stronger recoveries from Bitcoin and Ethereum before increasing risk exposure across the broader crypto market.
