Bitcoin slips to $68,000, leaving a CME gap while traders look for a $70,000 recovery

Bitcoin has fallen back toward $68,000, slipping into its February trading range as rising geopolitical tensions triggered a weekend selloff and pushed capital toward commodities.

BTC is currently trading near $68,250 after multiple failed attempts to break above $75,000, returning to levels last seen in early February.

The latest decline followed comments from Donald Trump, who warned of potential strikes on Iran’s power infrastructure unless the Strait of Hormuz was reopened within 48 hours—escalating fears tied to the ongoing Iran war.

CME gap in focus

The weekend move created a CME gap, which forms when bitcoin futures close on Friday and reopen on Sunday at a different price. A move back toward $70,000 would close that gap, making it a key near-term target for traders.

In traditional markets, Gold and silver extended their declines, reinforcing the idea that January’s highs were driven more by speculative positioning than sustained safe-haven demand.

Meanwhile, the US Dollar Index has climbed back above 100, supported by inflation concerns and diminishing expectations for Federal Reserve rate cuts.

Altcoins under pressure

Altcoins have lagged behind bitcoin, with DeFi tokens such as ETHFI, HYPE and SKY dropping around 3% since midnight UTC, even as BTC stabilized following its weekend losses.

In derivatives markets, more than $400 million in leveraged crypto positions were liquidated over the past 24 hours, including over $280 million in long bets—the largest wipeout since late February—highlighting the pressure on bullish traders.

Open interest in futures tied to tokenized gold like PAXG has risen 4%, suggesting a rotation of capital toward commodities. By comparison, Ethereum open interest increased by less than 1%.

On Hyperliquid, commodity-linked perpetual contracts tied to crude oil, gold and silver now rank among the most active, surpassing major crypto assets such as XRP and signaling a shift in trader focus.

Sentiment mixed, volatility rising

Funding rates show a mixed sentiment backdrop. Bearish positioning is building in altcoins like 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 risen to 60% from 53% last week, reflecting heightened uncertainty. Ether’s volatility has surged even further, reaching 84%—its highest level since early February.

Options data also points to caution. On Deribit, bitcoin put options are trading at a premium to calls, signaling strong demand for downside protection. Block trades have shown increased interest in bearish strategies and volatility plays.

Market trends

In spot markets, DeFi tokens are leading losses, with CoinDesk’s DeFi Select Index down 0.75% on the day. Broader altcoin and meme indices are also slightly lower.

However, privacy-focused tokens such as DASH, NIGHT and XMR have outperformed, gaining between 3% and 5% over the past 24 hours, supported by improving sentiment around privacy use cases and clearer regulatory signals.

CoinMarketCap’s Altcoin Season Index stands at 49, slightly below last week’s level but well above last month’s lows, indicating a more balanced market environment.

At the same time, the average relative strength index (RSI) across altcoins has moved into oversold territory, suggesting the potential for a short-term rebound.

For now, bitcoin remains range-bound, with traders watching whether it can reclaim $70,000 and close the CME gap, or if macro headwinds will continue to weigh on prices.

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