Bitcoin has recorded a fourth consecutive day of declines, dropping to approximately $63,100—the lowest level since early February when it reached $60,200, according to CoinDesk data. The downward trend reflects a broader risk-off sentiment among investors in global markets, compounded by a decline in U.S. equities and a 0.5% rise in the dollar index since Asian market hours on Monday.
As of midnight UTC, Bitcoin has decreased by 2.1% and 4.7% over the past 24 hours. Analysts are closely watching the critical support level at $60,000; if breached, it could lead to further liquidations and a potential plunge to around $52,500, a historical support level from 2021.
The altcoin market is similarly struggling. Bitcoin Cash (BCH) has lost 11.5% in just 24 hours, while other tokens like SUI, JUP, PUMP, and WLFI have experienced losses exceeding 2%. Many analysts describe the recent price action as a “slow bleed,” reminiscent of previous bearish trends in the cryptocurrency market. Interestingly, the average crypto relative strength index (RSI) is signaling that assets are “oversold,” indicating a possible short-term rebound could occur within the low $60,000 range.
In the derivatives market, the notional open interest for crypto futures has dropped over 4% to $92.5 billion, marking the lowest level since early April 2025. This persistent decline underscores a trend of de-risking among investors who are pulling capital out of leveraged products. Over the last 24 hours, exchanges have liquidated approximately $360 million worth of leveraged bets, with bullish positions bearing the brunt of these liquidations—accounting for over 90% across multiple platforms, including Hyperliquid, HTX, Aster, Bitmex, and Bitfinex.
A shift towards short positions has become evident, as global open interest in Bitcoin futures has surged to 690.89K BTC, the highest since February 6. The same trend is apparent in Ethereum’s futures, with annualized funding rates for perpetual contracts linked to major tokens remaining below zero, indicating a bearish bias among traders. Some tokens, like TRON (TRX), have reported funding rates as low as -35%, signaling a market that is becoming increasingly crowded with short positions.
Implied volatility indices for Bitcoin and Ethereum have climbed to two-week highs, illustrating growing apprehension in the market. On the Deribit exchange, put options for both cryptocurrencies are trading at a significant volatility premium compared to call options with March expiry dates, reflecting concerns of an extended price downturn. The trading activity includes BTC put spreads and straddles, strategies that indicate bearish sentiment and bets on increased volatility.
On a brighter note, the AI-related token Pippin (PIPPIN) has doubled in value since the beginning of the year, benefitting from a 7.7% increase over the past 24 hours. However, the broader altcoin market continues to lack bullish catalysts. The decentralized finance (DeFi) sector has experienced less total value locked (TVL) erosion than asset depreciation, suggesting a trend of moving assets into stablecoins for risk management. This has contributed to the underperformance of DeFi tokens, with CoinDesk’s DeFi Select Index (DFX) down 34.8% since the start of the year, making it the worst-performing benchmark.
Layer-1 tokens such as Aptos (APT), Cosmos (ATOM), and SUI have also faced declines of 5% to 8% over the last 24 hours, as liquidity issues and persistent sell pressure continue to plague the altcoin market.
