Dollar surge pressures crypto and gold after escalation in Iran conflict: Crypto Markets Today

CoinDesk

by Oliver Knight

March 3, 2026

AI-Generated Deep Dive Summary

The U.S. dollar's surge to a near two-month high has put pressure on risk assets, including cryptocurrencies and gold, following heightened tensions in the Iran conflict. The DXY index rose 0.5% to its highest level since January 19 after Israel launched fresh strikes on Tehran and Beirut, and Iranian drones targeted the U.S. embassy in Riyadh. This escalation led to broad declines across crypto markets, with Bitcoin (BTC) rallying to $70,000 on Monday before retreating to $66,500, remaining range-bound since early February. Altcoins like ADA, ZEC, and DASH saw significant drops of over 4% since midnight UTC. Despite the broader market downturn, some niche areas in crypto showed resilience. The CoinDesk Memecoin (CDMEME) and DeFi Select (DFX) indices posted modest gains, while NEAR surged 13.3% from oversold levels. DeFi tokens JUP and MORPHO continued their upward trajectory, extending weekly gains of 23% and 20%, respectively. However, the broader altcoin market remained in a consolidation phase, reflecting a downtrend that began in October. Tokens like PEPE, ATOM, SHIB, and BCH experienced double-digit losses over the past week. Market dynamics indicate a shift towards consolidation, with Bitcoin futures open interest stabilizing at $15.3 billion as leverage cleanup reached equilibrium. Retail sentiment remains cautiously bullish, with funding rates ranging from 0% to 10%, while institutional conviction has softened slightly. The options market has transitioned from "panic-hedging" to sustained bullishness, with call volume surging to a 63/37 split and implied volatility term structures moving into contango. This suggests that immediate fear has subsided, and mid-term growth expectations are gaining traction. The broader crypto market's decline can be attributed to the risk-off sentiment driven by the dollar's strength and investors seeking safety in traditional assets like gold. Gold reached a one-month high of $5,410 on Monday but fell back to $5,260 as the dollar's appeal grew stronger. Bitcoin's correlation with gold this week highlights the interconnectedness of these safe-haven assets, with both experiencing volatility despite their respective market dynamics. For crypto enthusiasts and investors, the current market

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Originally published on CoinDesk on 3/3/2026