Bitcoin (BTC) and major cryptocurrencies moved higher after a U.S. official confirmed that technical talks with Iran will continue despite renewed tensions in the Middle East. The update helped improve market sentiment, pushing crypto prices higher alongside gains in Asian stocks.
According to Bloomberg, the discussions will cover nuclear issues, sanctions, a performance-based memorandum of understanding, and shipping through the Strait of Hormuz. This comes as renewed tension in the Middle East followed two days of strikes that threatened to collapse an already fragile ceasefire, with President Trump saying the ceasefire is “over.”
Technical talks between the US and Iran continue, according to a US official, following two-days of clashes that threatened to shatter an already fragile ceasefire https://t.co/0L5lF6coCw
— Bloomberg (@business) July 9, 2026
The change in sentiment also weighed on traditional safe-haven assets. Oil prices declined on Thursday, the U.S. 10-year Treasury yield eased to around 4.54%, and the U.S. Dollar Index (DXY) slipped toward 100.5, creating a more favourable environment for risk assets, including cryptocurrencies.
Why did Bitcoin and Altcoins rally?
The confirmation that Washington remains committed to negotiations with Iran encouraged investors to return to the crypto market.
Bitcoin climbed above $64,000 after gaining more than 1% within an hour and has risen nearly 4% over the past two days. Ethereum followed the market higher, while XRP held firm around $1.11 after recovering from an intraday low of $1.09.
Dogecoin also joined the rally, gaining more than 2% over the last four hours to trade near $0.074 as buying momentum strengthened across the market.
The rebound came as investors viewed the continuation of diplomatic talks as a sign that further escalation may still be avoided despite the fragile security situation.
Derivatives market points to strong buying interest
The crypto derivatives market also reflected growing optimism. According to CoinGlass, total Bitcoin futures open interest climbed 2.7% over the last four hours to more than $47 billion. New positions were opened across major exchanges, including CME, Binance, OKX and Bybit, signalling renewed participation from traders.
XRP and Dogecoin futures also recorded stronger activity, with open interest for both assets rising about 1% during the same period. The increase in open interest alongside rising prices suggests traders are positioning for further upside if positive market sentiment continues.
Separately, Federal Reserve Chair Kevin Warsh announced the formation of task forces led by industry figures, including venture capitalist Marc Andreessen and Xbox executive Asha Sharma, to modernize central bank strategies with a focus on artificial intelligence, data and inflation.
ALSO READ: Bitcoin and Ethereum Still Too Volatile for Mainstream Use in Switzerland – SNB Chairman
Can diplomacy continue to support crypto markets?
While cryptocurrencies recovered, geopolitical uncertainty remains high.
Israel has reportedly informed the United States that new intelligence suggests Iran is planning another assassination attempt against President Donald Trump. During the recent funeral of Iran’s Supreme Leader Ayatollah Ali Khamenei, mourners were seen carrying banners reading, “We Will Kill Trump,” underscoring the heightened tensions between the two countries.
The latest developments come as reports claim Kuwait, the United Arab Emirates and Bahrain carried out coordinated strikes targeting Iran with U.S. intelligence support. The reported strikes followed Iranian attacks on Kuwait, Bahrain, Jordan and Qatar, including targets linked to U.S. military infrastructure.
Meanwhile, Democratic leaders, including Chuck Schumer, Nancy Pelosi, Elizabeth Warren and Mark Warner, criticized President Trump, accusing his administration of failing to secure a ceasefire and drawing the United States into what they described as a dangerous and illegal conflict with Iran.
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