Crypto falls as oil jumps and traders cut risk

Cryptocurrency markets declined overnight as rising oil prices and broader economic uncertainties led traders to reduce their risk exposure.

Bitcoin dropped about 2.6% to roughly $69,400, while Ethereum fell 4.1%, edging back toward the $2,000 mark.

This weakness extended beyond crypto. Nasdaq 100 futures slipped nearly 1%, and gold declined 1.8%. In contrast, oil prices surged past $100 amid rising tensions following stalled negotiations between the U.S. and Iran.

Altcoins faced greater pressure. The CoinDesk Computing Index fell 4.3%, and the DeFi Index dropped 3.9%. Overall, the market remains stuck within a range that has persisted since early February, with no clear breakout so far.

In derivatives markets, traders have noticeably pulled back. Total futures open interest decreased by 3.5% to $108.3 billion. Some traders increased short positions in Bitcoin once it dipped below $70,000. Meanwhile, funding rates for major coins like ETH, BNB, XRP, SOL, TRX, and DOGE turned negative, reflecting a growing bearish sentiment.

Options data also signals caution. On Deribit, put options are priced higher than calls, especially for Ethereum over the short term, indicating traders are more interested in downside protection than betting on price increases.

Certain tokens suffered heavier losses: FET declined 7.7%, ETHFI dropped 6.3%, and RENDER fell 5.9%. A few tokens such as ENA, TRX, and XDC saw modest gains.

The Altcoin Season Index stands at 48, suggesting a neutral market. For now, the pullback appears driven by macro factors rather than a complete trend reversal. However, given the ongoing low liquidity, altcoins could face sharper declines if selling pressures persist.

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