Bitcoin traded sideways on Wednesday, with price action compressed as derivatives positioning stabilized and capital rotated into select altcoins ahead of macro updates and a high-profile crypto event.
BTC hovered around $68,000, up roughly 0.9% since midnight UTC. The asset has been confined to a $65,100–$72,000 range since Feb. 6, following a sharp Feb. 5 drawdown that marked its weakest level since October 2024. Since that flush lower, volatility has tapered off, leaving the market in consolidation.
Altcoin performance was uneven but active beneath the surface. Monero (XMR) climbed about 3%, while Cardano’s ADA gained 1.7%. In contrast, Zcash (ZEC) fell 3.5% and Hyperliquid’s HYPE declined 1.1%, reflecting selective risk appetite rather than broad-based momentum.
The subdued tone in crypto coincided with a tentative recovery in U.S. equity futures. Contracts tied to the S&P 500 and Nasdaq 100 advanced 0.57% and 0.66%, respectively, as traders positioned ahead of the Federal Reserve’s latest meeting minutes, which may offer fresh guidance on interest-rate policy.
Leverage resets, market finds balance
Derivatives data suggests the market has moved beyond forced deleveraging and into a steadier phase. Open interest held firm near $15.5 billion, pointing to a more stable base after earlier volatility-driven liquidations.
Funding rates have flattened, with Binance showing slightly negative levels around -0.11%, indicating cooling retail enthusiasm. Institutional positioning remains relatively constructive, with the three-month annualized futures basis holding around 3%.
Options markets also reflect equilibrium. Over the past 24 hours, call and put volumes were nearly evenly divided at 49% and 51%. The one-week 25-delta skew eased to 11%, signaling reduced demand for near-term downside protection. However, implied volatility continues to display short-term backwardation, with a pronounced spike at the front end of the curve before leveling off near 49% for longer maturities.
Total liquidations reached $193 million over the past day, with longs accounting for 62% of forced closures versus 38% for shorts. BTC led with $72 million in liquidations, followed by ETH at $52 million and other tokens at $12 million. Binance liquidation data highlights $68,800 as a key upside level that could trigger additional forced buying if breached.
Event-driven bids lift select tokens
The altcoin season index has climbed to 34 out of 100 from 22 earlier this month, suggesting improving relative strength across alternative tokens even as overall volatility remains subdued.
WLFI, the Trump family-backed DeFi token, led gains, rising 8.8% since midnight and 18.5% over the past 24 hours. Traders appear to be positioning ahead of the project’s crypto forum at Mar-a-Lago, where executives from Goldman Sachs, Nasdaq and Franklin Templeton are expected to attend.
Still, rallies tied to real-world events often carry “buy the rumor, sell the news” risk, as early entrants may look to lock in profits once headlines materialize.
Elsewhere, lending protocol Morpho’s MORPHO token extended its recent surge, advancing 7% on the day and 36% over the past week, as traders seek higher-beta opportunities within an otherwise range-bound broader market.
