Bitcoin whipsawed during Asian trading hours on Monday, briefly plunging to $64,270 shortly after midnight UTC before rebounding to around $66,300 by late morning. The more than 5% drop — and swift recovery — unfolded in thin liquidity conditions, amplifying moves tied to renewed U.S. tariff plans and rising geopolitical tensions.
The volatility tracked developments in traditional markets. Futures linked to the S&P 500 slid 0.84% after Sunday’s open before stabilizing several hours later. In contrast, gold futures surged to their highest level since Jan. 30 at the open, then pared gains during European hours. Silver mirrored gold’s move.
The divergence followed comments from U.S. President Donald Trump about imposing new 15% global tariffs on trading partners, alongside reports of an expanded U.S. military presence near Iran. The combination sparked a flight toward safe-haven assets while pressuring risk-sensitive markets.
Altcoins felt the impact more acutely amid low liquidity. Solana (SOL) and SUI dropped between 7% and 8% overnight before rebounding in European trading. The swings triggered approximately $270 million in altcoin liquidations, according to CoinGlass.
Derivatives markets reflect caution
Leverage appetite remains subdued, with total crypto futures open interest holding below $100 billion for more than two weeks. In the past 24 hours alone, about $500 million in crypto futures positions were liquidated as traders faced margin shortages.
Capital flows suggest a defensive tilt. Open interest in Tether Gold (XAUT) futures climbed 14% over 24 hours, even as bitcoin, ether, solana, HYPE and dogecoin saw continued outflows.
Only ZEC and CRO posted positive 24-hour cumulative volume delta (CVD) readings, signaling buyer dominance. Bitcoin and other major tokens registered negative CVDs, indicating stronger selling pressure.
Bitcoin’s 30-day implied volatility index (BVIV) jumped 9% to above 60%, underscoring rising uncertainty. On Deribit, both bitcoin and ether puts traded at a premium to calls across maturities, reflecting ongoing downside hedging. Traders concentrated activity in put options at $58,000, $60,000 and $62,000 strike levels following the tariff news.
Altcoins struggle in thin order books
The broader altcoin market remained under pressure after what appeared to be an exaggerated selloff sparked by bitcoin’s weakness and declining U.S. equities.
Low liquidity intensified declines in smaller tokens. Pump.fun’s PUMP token slid 8.5% before bouncing, while LayerZero’s ZRO dropped 16.5% over 24 hours before recovering around 04:00 UTC. A few tokens outperformed, including restaking protocol ETHFI, which gained more than 10% from its Monday low.
Telegram-linked toncoin (TON) showed relative resilience, dipping 3.6% overnight before rebounding nearly 5%.
Among broader gauges, the CoinDesk DeFi Select Index (DFX) was the best performer over 24 hours, falling 1.84%. The CoinDesk Smart Contract Platform Select Index and CoinDesk Computing Select Index declined 3.56% and 3.23%, respectively.
Altcoins have largely tracked bitcoin’s direction throughout February, but thin order books have amplified moves. Should bitcoin establish a local floor and reclaim levels above $70,000, several altcoins could be poised for a stronger rebound after early-month volatility flushed liquidity from the market.
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