Bitcoin and the broader crypto market rallied at the start of the week after Donald Trump said the U.S. would delay planned strikes on Iran’s power facilities for five days, temporarily easing fears of escalation in the Iran war.

Trump said the two sides had held “very good and productive conversations” aimed at resolving tensions in the Middle East, sparking a brief wave of risk appetite across global markets.

That optimism quickly faded after Iran’s Fars news agency denied any talks had taken place, creating uncertainty and prompting a pullback in prices.

Bitcoin pares gains

Bitcoin, which had fallen below $68,000 overnight, surged past $71,000 during early U.S. trading before retreating back toward $70,000 as the conflicting reports weighed on sentiment.

Altcoins tracked the move. Ethereum, along with Dogecoin, Solana and Chainlink, climbed as much as 5% over 24 hours before surrendering part of those gains.

Broader markets react

In traditional markets, Gold erased most of its earlier losses and hovered near $4,440 per ounce, down roughly 1% on the day.

The US Dollar Index weakened to around 99.3, while global bond yields moved lower. The U.S. 10-year Treasury yield fell to about 4.3%, reflecting a shift toward safer positioning.

Oil prices dropped sharply, with WTI crude falling 11% to below $88 per barrel and Brent crude sliding around 8% to near $100. On Hyperliquid, tokenized Brent crude futures saw more than $62 million in liquidations, largely driven by long positions.

Stocks rise, options stay defensive

Crypto-related equities moved higher alongside digital assets. Shares of Galaxy Digital rose about 2% in pre-market trading, while Coinbase and IREN also posted gains. MicroStrategy climbed more than 3%.

Despite the rebound, derivatives markets continue to reflect caution. On Deribit, bitcoin put options remain priced at a significant premium to calls through the end of June, highlighting persistent demand for downside protection. Ether options show a similar pattern.

Fragile sentiment

The disconnect between the spot market rally and defensive positioning in options suggests traders remain unconvinced by the move higher.

With geopolitical tensions still unresolved and volatility in oil markets posing broader risks, the latest bounce appears tentative, with investors bracing for further market swings.