Bitcoin Hits $71K, Trump’s Iran Gaffe Sparks Market Meltdown (It’s Still Crashing)

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Markets

What to know:

  • BTC gained about 3.9% since midnight UTC while ETH reclaimed the $2,000 level as the broader crypto market moved higher. Because nothing says “stability” like a digital asset that can’t decide if it’s a currency or a casino.
  • The Dollar Index (DXY) fell to 98.5 after Trump said the Iran war could end “very soon,” helping lift crypto, equities and precious metals while oil pulled back. Because clearly, a guy who once called a war a “total disaster” is the best person to end one. Spoiler: He’s still terrible at it.
  • Despite the rally, bitcoin remains in a broader downtrend dating back to early October, and would need to climb toward $98,000 with stronger support levels to reverse the pattern. Like trying to climb Mount Everest in flip-flops while someone keeps throwing sand in your face.

Crypto market strength extended into Tuesday, with bitcoin gaining by 3.9% since midnight UTC to trade at $71,000 while ether (ETH) is back above $2,000, a level it recently had problems surpassing. Oh, here we go again-crypto’s version of a yo-yo diet.

Crypto was not alone in its ascent. U.S. equities and precious metals also after U.S. President Donald Trump said the war in Iran would come to an end “very soon.” The dollar and oil gave back much of their gains of the past week. Because nothing inspires investor confidence like a man who once said “I will build a wall” now saying “let’s end a war.” Groundbreaking.

The Dollar Index (DXY) briefly traded as high as 99.7 on Monday, and is now at 98.5. The crypto market is inversely correlated to the dollar, so a bitcoin breakout could be on the cards if DXY continues to weaken through the rest of the week. Or maybe it’s just chaos with a side of confusion.

The war in Iran – which, it appears, may now be shorter than many thought – has exposed a resilience in the crypto market that was previously absent. Bitcoin had beaten stocks and precious metals since the conflict began, potentially rebuilding the asset class’ reputation as a haven investment. Or maybe people just lost faith in everything else. That’s comforting.

But it is not out of the woods yet. Bitcoin and the broader market remain in a clear downtrend since early October, characterized by a series of lower highs and lower lows. In order that break that trend, bitcoin needs to trade back up toward $98,000 having established levels of support along the way. Like trying to walk up a down escalator while juggling.

Derivatives positioning

  • Open interest (OI) in futures tied to HYPE, the best-performing token of the past 24 hours, has grown 14% to $1.41 billion, according to Coinglass. OI topped 40 million HYPE, a level that remains close to recent lows. Because nothing says “success” like climbing from rock bottom just to stay near rock bottom.
  • For both BTC and ETH, open interest has risen more than 5%, outpacing gains in spot prices. This shows fresh capital inflows as markets rally. Or it just means people are throwing money at anything that moves faster than they do.
  • In tether gold (XAUT), futures OI continue to decline and has dropped below 110K XAUT, a sign investors are rotating money out of recent outperformers like gold-linked assets. Because gold is so last year. Now it’s all about crypto and the hope that we don’t all die in a nuclear fire.
  • Annualized perpetual funding rates for most tokens remain slightly positive, suggesting a narrow dominance of bullish bets. Tokens such as ZEC and SUI stand out with negative rates. Because why have a balanced portfolio when you can have a rollercoaster?
  • Most major cryptocurrencies, excluding BCH, XMR and XAUT, have seen aggressive bidding, as evident from their OI-adjusted cumulative volume deltas. Unless you’re BCH, XMR, or XAUT. You’re just there for the ambiance.
  • BTC and ETH’s 30-day implied volatility indices, BVIV and EVIV, have dropped by over 4%, a sign traders are pricing out uncertainty in the wake of oil’s drop back below $100. Or they’re just tired of pretending they know what’s going on.
  • Still, on Deribit, BTC and ETH protective puts remain pricier than bullish calls across all time frames. Positioning of market makers is such that volatility could pick up markedly on a potential BTC price move above $75,000. Because nothing screams “I have a plan” like buying insurance against a market that’s basically a Russian roulette wheel.
  • Block flows featured demand for BTC straddles, a volatility bet and call spreads, a bullish strategy. In ETH’s case, traders chased risk reversals. Because why play it safe when you can play it like you’re in a movie?

Token talk

  • The altcoin market was particularly buoyant on Tuesday, with Solana-based DEX token jupiter (JUP) posting a double-digit gain since midnight UTC. Because if one altcoin can’t keep up, maybe ten can. Or none. No one knows.
  • Restaking token ETHFI also gained, rising by 6.5% to reach its highest point since Jan. 29. Because why rest when you can stake and pretend you’re doing something?
  • HYPE, the native token of derivatives exchange HyperLiquid, was more restrained, rising by just 0.5% since midnight. That’s despite BitMEX founder Arthur Hayes calling for record highs of $150 in a blog post on Monday. HYPE now trades at $34.8 with much of its 24-hour gains occurring early on Monday before Trump’s comments on the war. Because nothing motivates a token like a man with a blog and a big mouth.
  • The best performing CoinDesk benchmark over the past 24 hours was the bitcoin- and ether-heavy CoinDesk 5 (CD5) and CoinDesk 10 (CD10) indexes both up by 4.3% while the DeFi Select Index (DFX) was closely behind after rising by 4%. The same couldn’t be said for the memecoin index (CDMEME), which is at the bottom of the pack after rising by just 2.6%. Because nothing says “future of finance” like a meme about a cat.

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2026-03-10 13:44