Bitcoin fell below the $70,000 threshold on Thursday as a spike in energy prices and a hawkish pause from the Federal Reserve pressured both crypto and traditional risk assets.
Bitcoin dropped to around $69,600, down roughly 1.6% on the day, while Ethereum slid 1.7% to about $2,160. The decline came alongside a sharp rally in energy markets, with Brent crude rising to $114 and Oman crude spiking as high as $150.
European natural gas prices also surged, with futures jumping about 25% to above €78 per MWh after Iran struck key Gulf energy infrastructure following an اسرائیली attack on its South Pars gas field, heightening fears of supply disruptions.
At the same time, the Fed left interest rates unchanged in the 3.50%–3.75% range, signaling a pause in rate cuts and supporting the U.S. dollar. The combined effect of tighter monetary conditions and rising energy costs triggered a broader risk-off reaction, with Nasdaq 100 futures down roughly 0.3%.
Derivatives positioning
Crypto derivatives markets reflected the shift in sentiment. Around $600 million in leveraged positions were liquidated over the past 24 hours, with long positions accounting for the majority as falling prices caught bullish traders off guard.
Futures open interest declined 5.6% to approximately $106.9 billion, indicating reduced participation. Ether futures saw a sharper 9% drop in open interest alongside a 6% fall in spot price, pointing to capital outflows.
Futures linked to Tether Gold and Zcash also recorded double-digit declines, signaling growing risk aversion among investors.
Bearish positioning is gaining traction, with funding rates turning negative across major tokens including BTC, ETH, BNB, and SOL. The 24-hour cumulative volume delta has also turned negative for most assets, reinforcing the shift toward short trades.
Volatility expectations are rising. BVIV climbed more than 5% to 58.36%, reversing a week-long decline, with a similar pattern seen in ether markets. On Deribit, stronger demand for put options points to increased downside hedging.
Options flows highlight growing interest in volatility strategies, with traders активно buying ether straddles, while bitcoin traders favored risk reversals and put spreads.
Token moves
Altcoins experienced deeper losses. Bittensor dropped 8.8%, while Hyperliquid declined 6.5%, reflecting thin liquidity conditions following October’s $19 billion leverage wipeout.
A few tokens bucked the trend. NEO rose 4.2%, while restaking token Ether.fi added 1.5% to trade near $0.55.
Broader market indicators also weakened. The CoinDesk 20 Index fell about 1%, while the DeFi Select Index and CoinDesk Memecoin Index declined 1.4% and 2%, respectively, underscoring widespread pressure across digital assets.
