Bitcoin has slipped back toward $68,000, re-entering its February range as geopolitical tensions triggered a weekend selloff and shifted market focus toward commodities.
BTC is trading near $68,250 after repeated failures to sustain a breakout above $75,000, effectively returning to price levels seen earlier this year.
The decline followed renewed escalation in the Iran war after Donald Trump threatened strikes on Iran’s power infrastructure unless the Strait of Hormuz was reopened—prompting a risk-off reaction across markets.
Gap left on CME
The weekend drop created a CME gap, formed when bitcoin futures close on Friday and reopen Sunday at a different price. A move back toward $70,000 would fill that gap, making it a key level for traders in the near term.
In broader markets, Gold and silver continued to decline, reinforcing the view that January’s rally was driven more by speculative momentum than sustained safe-haven demand.
Meanwhile, the US Dollar Index has climbed back above 100, supported by persistent inflation concerns and fading expectations for Federal Reserve rate cuts.
Altcoins lag, liquidations mount
Altcoins have underperformed bitcoin, with DeFi tokens such as ETHFI, HYPE and SKY dropping around 3% since midnight UTC, even as BTC stabilized after its weekend losses.
More than $400 million in leveraged crypto positions were liquidated over the past 24 hours, including over $280 million in long positions—the highest since late February—highlighting the extent of the shakeout in bullish bets.
Open interest in tokenized gold futures such as PAXG has increased by 4%, suggesting capital rotation into commodities. By contrast, Ethereum open interest has risen by less than 1%.
On Hyperliquid, commodity-linked perpetual contracts tied to crude oil, gold and silver now rank among the most traded, overtaking major crypto assets like XRP and signaling a shift in trader attention.
Mixed sentiment, higher volatility
Funding rates show a mixed outlook. Bearish positioning is building across altcoins including XRP, BNB, SOL, TRX, DOGE and ADA, while BTC and select assets such as BCH and LINK continue to maintain positive funding, indicating ongoing demand.
Bitcoin’s 30-day implied volatility has climbed to 60% from 53% last week, reflecting growing uncertainty. Ether’s volatility has surged to 84%, its highest level since early February.
Options markets are also leaning defensive. On Deribit, bitcoin put options are trading at a premium to calls, signaling strong demand for downside protection. Block trades show increased interest in bearish structures and volatility strategies.
Sector performance and outlook
DeFi tokens are leading declines in spot markets, with CoinDesk’s DeFi Select Index down 0.75% on the day, while broader altcoin and meme indices are also slightly lower.
In contrast, privacy-focused tokens such as DASH, NIGHT and XMR have posted gains of 3% to 5%, supported by improving sentiment and clearer regulatory frameworks.
CoinMarketCap’s Altcoin Season Index currently stands at 49, slightly down from last week but significantly above last month’s lows, indicating a more balanced market environment.
Meanwhile, the average relative strength index (RSI) across altcoins has entered oversold territory, suggesting a potential short-term bounce.
For now, bitcoin remains range-bound, with traders focused on whether it can reclaim $70,000 and close the CME gap, or if macro pressures will continue to weigh on price action.
