Crypto prices experienced a notable increase on Monday after U.S. President Donald Trump announced a five-day postponement of attacks on Iran’s power plants, alleviating fears of an escalating conflict. This development initially brought optimism to the markets. However, confusion arose when Iran’s Fars news agency reported that no talks had occurred, casting doubt on the accuracy of Trump’s claims.
In a post on Truth Social, Trump characterized the discussions between the U.S. and Iran as “very good and productive,” suggesting they could lead to a complete resolution of hostilities in the Middle East. Despite this optimistic outlook, the temporary pause does not signify the end of ongoing military actions, as Iran continues to conduct strikes across the Gulf, and any resolution would also require Israel’s participation.
Following Trump’s announcement, Bitcoin saw an upward shift, initially recovering from a dip below $68,000 to rise above $71,000 during early U.S. trading hours. However, following Iran’s denial of negotiations, Bitcoin retreated, trading closer to the $70,000 mark. Other cryptocurrencies, including Ether, Dogecoin, Solana, and Chainlink, also recorded gains of up to 5% within 24 hours, though they too experienced a pullback afterward.
In the commodities market, gold prices rebounded, recovering from earlier losses to trade around $4,440 per ounce, reflecting a decline of just 1% on the day. Simultaneously, the U.S. dollar index fell to 99.3, and global bond yields dropped significantly, with the U.S. 10-year yield plunging to 4.3%.
Crude oil prices dropped substantially, with West Texas Intermediate (WTI) falling 11% to below $88 per barrel, while Brent crude declined 8%, hovering around $100 per barrel. In the derivatives market, tokenized Brent crude futures recorded $62.4 million in liquidations on Hyperliquid, predominantly affecting long positions.
In the stock market, shares of Galaxy Digital, Coinbase, and IREN rose by approximately 2% in pre-market trading, while Marathon Digital Holdings, noted as the largest corporate holder of Bitcoin, gained over 3%.
Despite the initial positive market reaction to the potential de-escalation of tensions, the options market for Bitcoin indicates a defensive stance. Data from Deribit reveals that put options are trading at an 8-10 volatility point premium over call options, indicating that traders remain wary. This cautious outlook persists as market participants brace for potential aftershocks resulting from recent oil price fluctuations and broader economic implications.
