Bitcoin rebounds as crypto markets shrug off renewed Middle East uncertainty

Bitcoin gained 1.2% on Thursday, climbing back to around $63,000, while Nasdaq 100 futures rose 2.6% as investors showed limited concern over renewed U.S.-Iran tensions. The largest cryptocurrency is now up about 9% since the end of June.

The crypto market recovered after a brief pause earlier in the week, with Bitcoin increasing 1.2% since midnight UTC and Ethereum rising 0.75% to approximately $1,755.

The move followed positive momentum in U.S. equity markets, where Nasdaq 100 futures advanced despite another escalation in geopolitical tensions.

U.S. Central Command said it carried out strikes against 90 military targets in Iran, shortly after President Donald Trump announced that the ceasefire agreement had ended.

While markets initially reacted negatively, crypto assets quickly regained strength. Bitcoin bounced from oversold conditions and extended its recovery trend that began at the start of the month.

BTC is now trading roughly 9% above its June closing level, while several altcoins have posted even larger gains. LIT and ETHFI have surged around 35% over the same timeframe.

Derivatives market shows reduced risk appetite

Crypto futures activity has cooled as traders remain cautious amid ongoing uncertainty. Daily futures volume declined nearly 20% to about $191 billion, while total open interest stayed near $106 billion.

Bitcoin’s return toward $63,000 occurred alongside a drop in open interest for major USD- and USDT-margined contracts, declining from 272,000 BTC to 266,000 BTC. The divergence suggests traders are avoiding excessive leverage while navigating a volatile macro environment.

Similar positioning trends were visible in Ethereum, XRP, and Solana futures markets.

Canton Network’s CC token futures, however, saw open interest rise for a third consecutive session, reaching 271 million tokens — the highest level since May 31. Despite increased futures activity, the token continued falling, indicating that many traders may be opening short positions and betting on further declines.

S&P 500 perpetual futures also saw increased activity, with open interest reaching its highest level since SpaceX began trading on Nasdaq nearly a month ago.

Bitcoin and Ethereum’s 30-day implied volatility indexes declined again after a two-day increase, suggesting lower expectations for sharp price swings and renewed options supply.

On Deribit, investors continue paying higher prices for BTC and ETH put options than calls across all expiration periods, showing persistent demand for downside protection. This contrasts with U.S. equity markets, where options traders are showing record preference for bullish call positions on the S&P 500.

Altcoins extend recent momentum

LIT and ETHFI were among the top-performing tokens on Thursday, rising 5.6% and 8.5%, respectively, since midnight UTC and continuing their rallies from the previous week.

Ethena’s ENA token also showed signs of recovery, gaining 5.6% from Wednesday’s lows. However, the asset remains down more than 91% from its September 2025 peak after investors reduced exposure to the yield-generating DeFi platform.

WLFI, the token connected to World Liberty Financial and associated with the Trump family, continued to lag behind the broader market recovery, declining another 0.5% on Thursday. The token remains approximately 90% below its record high.

CoinMarketCap’s Altcoin Season Index moved slightly higher to 47/100, supported by stronger performance among DeFi-related tokens. However, the indicator remains subdued as investors wait for Bitcoin and Ethereum to show a more convincing recovery before increasing exposure to smaller cryptocurrencies.