Bitcoin eased toward $68,000 on Tuesday as a broader risk-off tone took hold across global markets, tracking losses in U.S. technology stocks while gold extended its recent pullback. Memecoins spearheaded declines among altcoins, even as bitcoin dominance remained stuck within a familiar range.
The crypto market mirrored weakness in tech equities, with bitcoin slipping 1.25% since midnight UTC. Over the same stretch, Nasdaq futures fell 0.55%, and gold dropped 2.4%, deepening its correction from recent highs.
High-beta tokens suffered heavier losses. Memecoins such as Pepe (PEPE), Dogecoin (DOGE) and Official Trump (TRUMP) slid between 3.5% and 4.5%, underperforming the broader market as risk appetite deteriorated.
The equity selloff has been linked to rising unease about artificial intelligence and its disruptive potential across multiple industries. Over the past two weeks, bitcoin’s correlation with the Nasdaq has flipped decisively positive, with the rolling coefficient rising from -0.68 to +0.72 — signaling that BTC is once again trading closely alongside tech stocks.
Gold hovered near $4,928 after failing to hold above $5,000. The metal had surged to a record $5,600 on Jan. 28 before undergoing a sharp 21.5% correction in the days that followed.
Derivatives reflect defensive positioning
Futures markets point to continued caution among traders:
- Aggregate crypto futures open interest declined 1.5% in 24 hours to $93 billion, marking new multi-month lows.
- Exchanges liquidated $229 million in leveraged positions over the same period, with long bets accounting for most of the forced unwinds.
- DOGE futures open interest dropped 4%, leading weakness among major tokens, while PEPE, LINK and AVAX posted 3% to 5% declines.
- Open interest in HYPE futures cooled to 44.45 million tokens — the lowest since early December — suggesting profit-taking after its recent outperformance.
- Implied volatility for bitcoin and ether has retreated from monthly highs, indicating that acute panic has faded.
- On Deribit, put options on bitcoin and ether continue to trade at a premium to calls, signaling ongoing downside hedging, though positioning is less defensive than it was two weeks ago.
Altcoins lag as dominance holds steady
Altcoins remain largely tethered to bitcoin’s direction, with the bitcoin dominance ratio oscillating between 57.4% and 60.1% since September, reflecting BTC’s steady grip on overall market capitalization.
A few tokens have bucked the broader weakness. AI-linked MORPHO has gained 23.5% over the past week, while privacy-focused Zcash (ZEC) advanced 19% in the same timeframe.
By contrast, layer-1 token LayerZero (ZRO) has fallen 16% over the past week, extending losses despite announcing a collaboration with Citadel Securities and Depository Trust & Clearing Corporation.
On intraday time frames, pressure remains evident. Tokens such as HYPE, SUI and ASTER have shed between 3% and 4.8% since midnight UTC, as traders await a catalyst capable of reviving bullish momentum across the digital asset market.
