Bitcoin and ether slid sharply Thursday as geopolitical tensions in Iran pushed oil prices higher, prompting traders to position for further downside rather than panic selling.
Market Moves
Bitcoin (BTC $67,326.52) dropped to around $66,700, losing 2.4% since midnight UTC, while ether (ETH) tumbled 4.4%, reflecting broader risk-off sentiment across crypto markets.
The sell-off followed remarks from U.S. President Donald Trump, who warned that military action in Iran would escalate: “Over the next two to three weeks, we’re going to bring them back to the stone ages where they belong.” Oil surged nearly 10% to $108 per barrel. U.S. futures diverged, with Nasdaq 100 down 1.5% and S&P 500 down 1.1%, while the dollar gained 0.5% above 100 points.
Derivatives and Positioning
Futures and options data indicate traders are hedging for further declines rather than panicking. BTC open interest ticked up slightly, while perpetual funding rates dropped to their lowest since March 12, signaling a short-biased market. Ether funding rates are at their lowest since October 2025. Solana (SOL) remained relatively steady, while Zcash (ZEC) and ADA saw falling open interest, suggesting outflows.
Around $400 million in futures positions were liquidated, a 17% increase from the prior day. Despite the volatility, BTC and ETH 30-day implied volatility stayed flat, reflecting orderly selling. Traders have been buying put options, keeping downside protection pricier than calls, with block trades including ether straddles, put spreads, and BTC call spreads.
Token Highlights
DeFi tokens led losses: CoinDesk’s DFX index fell 5.9%, CPUS dropped 5%, and Ethena (ENA) lost over 10%. UNI, LDO, SKY, and AAVE fell 4.2–6.5%. Algorand (ALGO) bucked the trend, rising 0.8% amid a 22% rally over the past week. CoinMarketCap’s altcoin season index fell from 50/100 to 42/100 since March 30, showing broader sector weakness.
