Bitcoin rises to $71,000 as the U.S. dollar and oil prices retreat following comments by Donald Trump on the Iran conflict.

Crypto markets extended their gains on Tuesday as the U.S. dollar weakened following comments from Donald Trump suggesting the conflict involving Iran could end soon, although Bitcoin still remains within a broader downtrend.

Bitcoin rose about 3.9% since midnight UTC to trade near $71,000, while Ethereum climbed back above the $2,000 level — a threshold it had recently struggled to maintain.

The rally was not limited to crypto. U.S. equities and precious metals also moved higher after Trump indicated the war in Iran could conclude “very soon.” At the same time, the U.S. dollar and oil prices retreated, giving back much of the gains recorded over the past week.

The U.S. Dollar Index (DXY) briefly climbed to 99.7 on Monday before slipping to around 98.5. Because crypto assets often move inversely to the dollar, continued weakness in the DXY could support a further breakout in bitcoin later this week.

The Iran conflict — which now appears likely to be shorter than many initially expected — has also highlighted renewed resilience in crypto markets. Since hostilities began, bitcoin has outperformed both equities and precious metals, potentially reinforcing its narrative as a safe-haven asset.

Despite the rebound, the broader market trend remains bearish. Bitcoin and the wider crypto market have been in a downtrend since early October, marked by a sequence of lower highs and lower lows. To break that structure, bitcoin would likely need to push back toward $98,000 while establishing stronger support levels along the way.

Derivatives positioning

Derivatives data suggests fresh capital entering the market as prices rise.

Open interest in futures linked to HYPE — one of the best-performing tokens over the past 24 hours — has increased by 14% to $1.41 billion, according to Coinglass. Total open interest climbed above 40 million HYPE, though that still sits near recent lows.

For both bitcoin and ethereum, futures open interest has climbed more than 5%, outpacing gains in spot prices — a sign that new positions are being added as the market rallies.

In contrast, futures open interest tied to Tether Gold (XAUT) has continued to decline, falling below 110,000 XAUT. The drop suggests investors may be rotating funds out of gold-linked assets that previously outperformed.

Perpetual funding rates across most tokens remain slightly positive, indicating a modest dominance of bullish positions. However, tokens such as Zcash and Sui still show negative funding rates.

Most major cryptocurrencies — excluding Bitcoin Cash, Monero and Tether Gold — have experienced aggressive bidding activity, reflected in strong open-interest-adjusted cumulative volume deltas.

Meanwhile, 30-day implied volatility indices for bitcoin and ethereum — BVIV and EVIV — have fallen by more than 4%, indicating traders are pricing in less uncertainty following oil’s retreat below $100.

Even so, options data from Deribit shows protective put options remain more expensive than bullish calls across most maturities. Market maker positioning suggests volatility could increase sharply if bitcoin moves above the $75,000 level.

Recent block trades have included demand for bitcoin straddles — a strategy that bets on volatility — along with call spreads that signal bullish positioning. In ethereum markets, traders have been actively buying risk reversals.

Token talk

The altcoin market also posted solid gains on Tuesday. The Jupiter (JUP) token, tied to a Solana-based decentralized exchange, rose by double digits since midnight UTC.

The restaking token Ether.fi (ETHFI) climbed 6.5%, reaching its highest level since Jan. 29.

Meanwhile, HYPE — the native token of derivatives exchange HyperLiquid — was more subdued, gaining only about 0.5% since midnight. The muted move came despite bullish comments from Arthur Hayes, founder of BitMEX, who predicted in a blog post Monday that the token could eventually reach $150. HYPE currently trades near $34.8, with most of its recent gains occurring earlier Monday before Trump’s remarks.

Among market benchmarks, the bitcoin- and ether-heavy CoinDesk 5 (CD5) and CoinDesk 10 (CD10) indexes were the top performers, each rising about 4.3% over the past 24 hours. The CoinDesk DeFi Select Index (DFX) followed closely with a 4% gain.

Memecoins lagged behind the broader market, with the CoinDesk Memecoin Index (CDMEME) posting the smallest advance after rising about 2.6%.