The US-Iran war continues to drive volatility in Bitcoin, Ethereum, and Dogecoin prices, even as risk-on sentiment returns and open interest rises with BTC reaching new multi-month highs.
How the US-Iran War Affects Bitcoin, Ethereum, and Dogecoin Prices
Crypto analyst Michaël van de Poppe noted the conflict is keeping markets volatile and cautioned that these assets won’t broadly prosper if that remains the consensus. He added, however, that a sufficiently weak U.S. economy may force the Fed back into easing—which would be supportive for risk assets.
Despite the conflict, BTC, ETH, and DOGE have held up. Bitcoin rallied to about $76,000 recently as market participants priced in an imminent end to hostilities amid a fragile two-week ceasefire and comments from President Donald Trump that another round of talks could occur within days—factors that have boosted bullish sentiment. (Chart: Michaël van de Poppe on X)
Risk-on flows are evident: on-chain analytics firm Santiment reported BTC and ETH reaching their highest levels since early February while margin and leveraged positions have surged. Bitcoin open interest jumped about 59% over seven weeks, and Ethereum’s rose roughly 45% across the same period—signs of growing trader conviction but also higher risk, since crowded leveraged trades can unwind quickly. When open interest climbs with prices, markets often become more volatile and prone to sharp squeezes.
Analyst Warns That BTC Has Yet to Form a Bottom
Analyst Colin warned that a bear-market bottom is still unlikely despite the recent rebounds. He argued the $60,000 February low came only four months into a typical 12-month cycle, making it statistically unlikely to be the ultimate bottom. Bitcoin’s drop from its October 2025 peak has been about 53%, versus ~77% crashes in past cycles; the bear phase could be shorter this time, but Colin cautioned it’s unlikely to be two-thirds shorter than normal.
(BTC trading at $73,974 on the 1D chart; source: TradingView)
Featured image from Pixabay, chart from TradingView.com