The dollar index has risen again, and we can all feel it. After the escalation in the Iran conflict, the DXY increased by 0.5% to its highest level since January – gold then dropped from 5,410 to 5,260 US dollars, as investors prefer to flee into the safe haven of the US dollar. Cryptocurrency markets are also in the red.

Bitcoin remains relatively stable around 74K after briefly hitting 70K on Monday. But altcoins are taking a much harder hit – ADA, ZEC, and DASH have lost between 2-7% in the last 24 hours. Interestingly, there are also a few outliers: NEAR has surged 13% from oversold levels, and JUP and MORPHO are extending their weekly gains (23% and 20%), while the rest of the altcoin market is more consolidating.

On the derivatives side, it looks like things are calming down. Open interest in BTC futures remains steady at 15.3 billion USD, with liquidations over 24 hours totaling 392 million (BTC 163M, ETH 96M). Funding rates are between 0-10%, indicating cautious optimism. The options market has shifted from panic hedging to more bullishness – call volume has risen to 63/37, and downside protection has become cheaper. This suggests that immediate fears are easing.

All in all, it looks like a consolidation phase. Bitcoin and gold are moving upward in tandem during risk-averse periods, but the markets seem to have found a bottom. The question now is whether we will move higher from here or continue sideways for a while longer.