Bitcoin slips from $79,500 as oil surge triggers broad market weakness in crypto

Bitcoin (BTC) failed to sustain momentum above $80,000, reversing lower and dragging broader crypto markets into the red as rising oil prices weighed on risk sentiment. The move saw bitcoin slip roughly 2% after briefly reaching an intraday high near $79,480.

The rally began around 23:00 UTC alongside the U.S. equity and CME futures open — a session often marked by heightened volatility. However, momentum faded into the Asian trading hours, and by 05:30 UTC bitcoin broke lower after repeated failures at the $80,000 level, sliding back toward $77,800.

Macroeconomic pressure added to the downturn, with Brent crude climbing to $107 per barrel, its highest level since the U.S.–Iran ceasefire period began. Sentiment was also influenced by reports that U.S. President Donald Trump canceled planned talks involving U.S. officials in Pakistan over the weekend.

Ether (ETH) traded near $2,320, down 2.2% over the period, slightly outperforming weaker altcoins but still tracking the broader risk-off move.

Crypto liquidations totaled nearly $300 million over the past 24 hours, with short positions making up a significant share after being caught in bitcoin’s brief spike toward $79,500.

In derivatives markets, XRP led gains in open interest among major tokens, rising 2.5% to 1.82 billion XRP — a one-week high. Combined with negative funding rates and weakening cumulative volume delta, the data reflects a cautious positioning backdrop across major assets.

Analysts noted that persistently negative bitcoin funding rates are increasingly linked to institutional hedging activity rather than outright bearish sentiment.

Elsewhere, HBAR, CC, XLM, and HYPE also saw notable increases in open interest, while SUI recorded the weakest cumulative volume delta, indicating sustained aggressive selling. Sentiment around SUI was further pressured following a hack of the Sui-based DeFi protocol Scallop, where attackers reportedly stole around 150,000 SUI tokens worth just over $140,000.

Despite the volatility, implied volatility for bitcoin and ether has continued trending lower over the past month, suggesting relatively stable forward expectations. This aligns with subdued readings in traditional markets, including a lower VIX and ongoing strength in U.S. equities such as the Nasdaq.

Options data from Deribit shows a continued bias toward put positioning across maturities, though longer-dated ether contracts appear less bearish than bitcoin equivalents. The $80,000 bitcoin call strike remains the most active level, with over $1.5 billion in notional open interest. Positive dealer gamma at this level suggests market makers may sell into rallies and buy dips, potentially dampening volatility around this key zone.

Flow data from Laser Digital indicates traders are increasingly favoring risk reversals over outright downside hedges, pointing to positioning for volatility rather than directional bearish bets.

Altcoins saw the sharpest losses during the 05:30 UTC selloff, with Lido (LDO) leading declines after falling roughly 17% and erasing prior gains.

The CoinDesk 20 (CD20) Index dropped 1.5%, while the DeFi Select Index (DFX) fell 2.3%. The Smart Contract Platform Select Index (SCPX) underperformed, down 2.5%.

A few tokens moved against the trend, including PENGU, JUP, and CHZ, which rose 9.1%, 4%, and 3.1%, respectively.

Meanwhile, CoinMarketCap’s “Altcoin Season” index remained unchanged at 39/100, holding neutral territory and well below last month’s peak of 51/100.

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