Bitcoin and the wider crypto market turned lower after traders took profits following BTC’s monthly high, while renewed Iran-related attacks on U.S. military targets added fresh risk-off pressure. Sellers controlled price action across most digital assets.
Bitcoin and ether declined 1.1% and 1.7%, respectively, since midnight UTC as the crypto market faced another round of selling.
The downturn followed bitcoin’s rise to $65,500 on Wednesday, its highest level of the month, which prompted investors to secure gains after the recent upward move.
Several altcoins also reversed earlier gains. PUMP and ZEC each dropped 4.4% as Tuesday’s strong rallies lost momentum, reflecting limited market liquidity and weak conviction among traders.
Traditional markets also came under pressure. Nasdaq 100 futures slipped 0.25%, extending a decline that has continued for roughly the past 30 days.
Geopolitical tensions remained a major factor influencing risk assets. Iran launched strikes against U.S. military bases in neighboring Gulf countries on Thursday, while the U.S. continued airstrikes in the region, increasing uncertainty across financial markets.
Derivatives Activity Points to Position Unwinding
Ether’s 1.7% decline slightly exceeded bitcoin’s drop, with the weakness appearing to stem more from traders closing bullish positions rather than a major increase in new short positions.
This was reflected in ether futures open interest, which declined to 14.35 million ETH from Wednesday’s five-week peak of 14.45 million ETH. Bitcoin derivatives showed a similar trend, suggesting traders were reducing exposure after the recent rally.
XRP saw open interest rise to a 10-day high of 2.21 billion XRP even as the token’s spot price slipped 0.6%. The combination may indicate growing bearish positioning, although positive funding rates suggest some traders remain positioned for upside.
XRP’s 24-hour cumulative volume delta (CVD) turned negative, indicating that short sellers are entering positions through market orders rather than waiting with passive bids.
SUI also recorded higher derivatives activity, with open interest increasing 15%. However, total open interest of 654 million tokens remains close to levels seen earlier in the week. The token itself fell nearly 2% over the past 24 hours.
Overall, most cryptocurrencies aside from bitcoin, ether, and Monero posted negative open-interest-adjusted CVD readings, showing that sellers are currently dominating market activity.
Bitcoin’s 30-day implied volatility climbed 2% to 38%. Historically, volatility levels below 40% have often preceded periods of renewed market swings as volatility returns toward normal ranges.
Options markets also showed increased bullish activity. Data from Deribit revealed rising volume and open interest in bitcoin call options at $70,000 and $72,000 strike prices, likely linked to a large call spread position targeting a move toward $72,000 by the end of July.
For ether, the most actively traded bullish option over the past 24 hours was a July expiration call with a $2,300 strike price.
Altcoin Market Update
MORPHO, an AI-focused crypto token, moved against the broader market trend, gaining 3.5% since midnight as it attempted to challenge the $2.20 resistance level. That price area previously triggered a rejection on July 2, sending the token down to $1.85.
Most other major altcoins tracked bitcoin and ether lower. HYPE, SOL, and ENA declined between 1.3% and 1.8%, while NEAR, JUP, and DASH posted larger losses.
CoinMarketCap’s Altcoin Season Index remained stuck at 48 out of 100 after falling from 58 earlier in the week as traders shifted focus back toward bitcoin.
Memecoins remained one of the few active areas within the altcoin market, especially tokens launched on Robinhood’s new blockchain. Cashcat (CASHCAT) gained attention after rising from obscurity to a $220 million market cap during Robinhood Chain’s first week.
However, the token has since fallen to around a $91 million market cap, despite continuing to record roughly $60 million in daily trading volume.
