Bitcoin dropped to five-day lows on Thursday as repeated attempts to break $94,500 failed, keeping the cryptocurrency in a well-defined trading range.
BTC slid below $90,000, falling from a local high of $91,570 at 01:15 UTC to $91,536. This marked the third rejection at $94,500, following similar setbacks on Dec. 4 and Dec. 10. The current trading range of $85,000–$94,500 has provided relative stability after the October selloff from a record high of $126,220 on Oct. 6 to $80,600 by Nov. 21.
Altcoins under pressure
Altcoins faced steep losses, led by Zcash (ZEC), which plunged more than 16% between midnight and 10:00 UTC, while PUMP also fell in double digits. DeFi tokens suffered the most, with the DeFi index (DFX) down 3.12% and the memecoin index (CDMEME) off 3.09%. Larger-cap tokens held up better, as the CoinDesk 20 fell 2.23%. Thin liquidity exacerbated losses, highlighted by a $12 million long liquidation on ZEC. ZEC also faces uncertainty after key development team members resigned following a dispute with a supporting nonprofit. CoinMarketCap’s “altcoin season” indicator remains deeply bearish at 23/100, well below its September peak of 78/100.
Derivatives and positioning
Over $400 million in leveraged crypto futures were liquidated in 24 hours, mostly on bullish positions. Overall futures open interest fell to $140 billion, though BTC open interest rose 2% with positive funding rates, while ETH, SOL, XRP, ZEC, and SUI saw outflows. BTC and ETH puts trade at a premium on Deribit, though short-dated skew has eased. Volatility strategies, including straddles, strangles, and ETH put spreads, remain popular.
Macro backdrop
U.S. equity futures declined, with Nasdaq 100 and S&P 500 down 0.27% and 0.29%, while the dollar index (DXY) has risen more than 1% since Dec. 24.
