Bitcoin advances on Iran ceasefire optimism, with Algorand sustaining its uptrend

Bitcoin traded just below the $70,000 mark as markets reacted to signs of potential de-escalation in the Iran conflict, with more than $270 million in short positions wiped out in a rapid squeeze.

Crypto assets moved higher alongside equities and index futures after an Axios report said the U.S. and Iran are in talks over a possible 45-day ceasefire. Hopes that tensions could ease—particularly around the Strait of Hormuz—helped lift risk appetite, while the U.S. Dollar Index (DXY) weakened.

Additional reports suggest Pakistan is mediating negotiations under the so-called “Islamabad Accord,” which could see an immediate ceasefire and the reopening of the key shipping corridor. Even so, investors remain cautious about how likely such an agreement is to materialize.

On prediction platform Polymarket, the odds of a ceasefire being reached this month have risen to about 30%, up from 18% prior to the latest developments. Still, elevated oil prices and expectations that the Federal Reserve will keep interest rates unchanged continue to cap bullish sentiment.

If a ceasefire does take shape, analysts say a broader relief rally could support further gains in risk assets. For now, however, traders appear to be treating the headlines with caution.

Derivatives data suggests growing bullish positioning. Open interest in bitcoin and ether futures has increased by 7% and 11%, respectively, outpacing spot price gains and pointing to fresh leveraged inflows. Funding rates and cumulative volume deltas for both assets remain in positive territory.

Among altcoins, Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK) have posted double-digit increases in open interest alongside positive funding rates, signaling constructive sentiment. Meanwhile, Bitcoin Cash (BCH) and HYPE continue to show negative funding rates, indicating bearish positioning.

Volatility has continued to compress, supporting the recent rally. Bitcoin’s 30-day implied volatility index (BVIV) has dropped below 50% for the first time since early February, while Ether’s EVIV has fallen to its lowest levels in weeks.

Options markets point to key price zones. On Deribit, bitcoin’s $60,000 put and $80,000 call each hold around $1.4 billion in open interest, making them critical levels for downside protection and upside exposure. A breakout beyond this range could trigger a sharp increase in volatility.

Despite bullish signals in futures markets, options traders remain cautious. Put options for BTC and ETH are still priced higher than calls, reflecting persistent demand for downside hedging. Part of this skew is driven by call overwriting strategies used to generate yield.

In token-specific news, Algorand’s ALGO has surged nearly 50% over the past month after a Google Quantum AI research paper highlighted its quantum-resistant framework.

The report examined how blockchain networks could defend against future quantum computing threats capable of breaking existing encryption systems. Algorand stood out for its use of FALCON, a post-quantum signature scheme selected by the U.S. National Institute of Standards and Technology (NIST).

Already implemented in features such as state proofs and certain transaction types, the technology has attracted renewed attention. ALGO has risen from roughly $0.08 to near $0.12, pushing its market capitalization above $1 billion. The token is also up more than 7% in the past 24 hours, supported by the broader market upswing.