Bitcoin fell to its lowest level since April 13 on Thursday, while ether slipped below $2,000, as U.S. airstrikes in the Strait of Hormuz sparked inflation concerns and triggered broad risk-off moves across markets.
BTC traded near $73,400, down about 1.2% on the day after briefly hitting its weakest level in several weeks. Ether underperformed, dropping 1.5% and breaking below $2,000 for the first time since late March.
The decline followed a jump in oil prices after the strikes raised fears of renewed supply disruption. Crude rose from $92 to as high as $96 per barrel before stabilizing near $94, reigniting inflation concerns and pressuring global equities and crypto assets.
U.S. equity futures also turned lower, with S&P 500 and Nasdaq 100 contracts slipping ahead of the U.S. trading session.
Liquidations across crypto derivatives reached $958.8 million over the past 24 hours, with longs accounting for $897 million of the total — signaling a largely one-sided unwind of bullish leverage.
Bitcoin open interest was broadly flat overall, though CME futures fell 9.85% to $7.56 billion, indicating reduced positioning in regulated markets. Offshore perpetuals remained steady, while funding rates hovered near neutral, suggesting limited aggressive leverage on either side.
Ether futures showed contrasting behavior, with open interest rising to a record 16.39 million ETH ($32.6 billion) even as prices declined. The divergence points to growing short exposure and sustained speculative activity despite weakening spot demand.
XRP open interest edged lower alongside price weakness, suggesting position unwinding rather than fresh short buildup. Across major altcoins including SOL, funding turned negative on most venues, with shorts paying longs on platforms such as Binance — a sign of broader bearish positioning.
Options markets are also in focus, with about $8 billion in contracts expiring on Deribit, including $6.5 billion in bitcoin and $1.4 billion in ether. Bitcoin max pain is centered near $75,000, slightly above spot levels, with large open interest clustered at higher strike prices.
Despite the sell-off, volatility remains subdued. Deribit’s DVOL index sits near the lower end of its annual range, while short-term skew shows elevated demand for downside protection.
The broader market weakened in tandem, with the CoinDesk Computing Select Index falling nearly 3%. Thin liquidity in several altcoin pairs amplified volatility, leading to sharp intraday swings.
Some tokens saw outsized moves, including Humanity protocol (H), which plunged more than 30% before rapidly rebounding. AI tokens such as RENDER and FET, along with DeFi assets like JUP and ETHFI, also posted notable losses.
Sentiment continues to deteriorate, with CoinMarketCap’s Altcoin Season Index falling to its lowest level in over three months, underscoring a broad risk-off environment across digital assets.
