Bitcoin and ether fell sharply Thursday as rising tensions in Iran pushed oil prices higher, with traders increasingly positioning for further downside rather than engaging in panic selling.
Market Moves
Bitcoin (BTC $67,326.52) gave back much of its recent gains, falling to around $66,700—a 2.4% drop since midnight UTC. Ether (ETH) underperformed, tumbling 4.4% amid continued risk-off sentiment across crypto markets.
The sell-off followed comments from U.S. President Donald Trump, who warned that military action in Iran would intensify, saying, “Over the next two to three weeks, we’re going to bring them back to the stone ages where they belong.” Oil reacted immediately, with Brent crude surging roughly 10% to $108 per barrel. U.S. equities diverged, with Nasdaq 100 futures down 1.5% and S&P 500 futures down 1.1%, while the U.S. dollar rose 0.5% above 100 points.
Derivatives and Positioning
Derivatives data indicate traders are hedging against further losses rather than panicking. BTC open interest ticked up slightly across USD- and USDT-denominated futures, while perpetual funding rates fell to their most negative levels since March 12, signaling a short-biased market.
Ether funding rates are now at their lowest since October 2025, pointing to a strong bearish bias. Solana (SOL) shows a more measured response despite a recent hack, while Zcash (ZEC) and ADA experienced declines in open interest, suggesting capital outflows.
Roughly $400 million in futures positions were liquidated due to margin shortfalls—a 17% increase from the previous day. Yet BTC and ETH 30-day implied volatility remains stable, highlighting orderly spot market selling. Traders have been actively buying put options, keeping downside protection more expensive than calls across all tenors. Block trades included ether straddles, put spreads, and bitcoin call spreads.
Token Highlights
CoinDesk’s DeFi Select Index (DFX) led losses, down 5.9%, followed by the Computing Select Index (CPUS) at -5%. Ethena (ENA) fell over 10%, while UNI, LDO, SKY, and AAVE declined 4.2–6.5%. Algorand (ALGO) bucked the trend, rising 0.8% amid a 22% rally over the past week. CoinMarketCap’s altcoin season index dropped from 50/100 to 42/100 since March 30, reflecting sector-wide weakness.
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