Crypto markets advanced on Tuesday as the U.S. dollar weakened following remarks from Donald Trump suggesting the conflict involving Iran could end sooner than expected. Despite the rebound, Bitcoin remains within a broader downtrend.

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

The rally extended beyond crypto. U.S. equities and precious metals also gained after Trump said the war in Iran could conclude “very soon.” Meanwhile, both the U.S. dollar and oil prices retreated, giving back much of the strength seen over the past week.

The U.S. Dollar Index (DXY) briefly touched 99.7 on Monday before sliding to around 98.5. Because cryptocurrencies often move inversely to the dollar, continued weakness in the index could provide further support for bitcoin in the coming days.

The Iran conflict — which now appears likely to be shorter than many initially expected — has also highlighted the crypto market’s resilience. Since tensions began, bitcoin has outperformed equities and precious metals, potentially strengthening its reputation as a safe-haven asset during geopolitical uncertainty.

Still, the broader technical structure remains bearish. Bitcoin and the wider crypto market have been in a downtrend since early October, defined by a series of lower highs and lower lows. To reverse that pattern, bitcoin would likely need to climb back toward the $98,000 level while establishing stronger support zones along the way.

Derivatives positioning

Data from derivatives markets indicates fresh capital entering the space as prices rise.

Open interest in futures tied to HYPE — one of the strongest-performing tokens over the past 24 hours — has jumped 14% to $1.41 billion, according to figures from Coinglass. Total open interest surpassed 40 million HYPE, though that figure still sits close to recent lows.

For both bitcoin and ethereum, futures open interest has climbed more than 5%, outpacing the increase in spot prices — a sign that traders are opening new positions as the rally unfolds.

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

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

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

At the same time, the 30-day implied volatility indices for bitcoin and ethereum — BVIV and EVIV — have dropped by more than 4%, suggesting traders are pricing in less uncertainty following oil’s retreat below $100.

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

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

Token talk

Altcoins also posted solid gains on Tuesday. The Jupiter (JUP) token, linked to a Solana-based decentralized exchange, recorded a double-digit increase since midnight UTC.

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

Meanwhile, HYPE — the native token of derivatives exchange HyperLiquid — saw a more modest move, gaining roughly 0.5% since midnight. The subdued reaction came despite bullish remarks 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 much of its recent gains occurring earlier Monday before Trump’s comments.

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

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