Bitcoin has retreated to the $68,000 area, slipping back into its February range after a weekend selloff driven by rising geopolitical tensions and a shift in capital toward commodities.

BTC is currently trading around $68,250, pulling back after multiple unsuccessful attempts to break above $75,000 and revisiting levels last seen earlier this year.

The downturn followed renewed escalation in the Iran war, after Donald Trump threatened strikes on Iran’s power infrastructure unless the Strait of Hormuz was reopened—triggering a broader risk-off reaction.

CME gap draws attention

The weekend price action left behind a CME gap, created when bitcoin futures close on Friday and reopen on Sunday at a different level. A rebound toward $70,000 would close that gap, making it a key short-term target for traders.

Meanwhile, Gold and silver extended their declines, reinforcing the view that January’s rally was largely speculative rather than a sustained safe-haven move.

At the same time, the US Dollar Index has moved back above 100, supported by persistent inflation concerns and fading expectations of Federal Reserve rate cuts.

Altcoins lag behind

Altcoins have underperformed bitcoin, with DeFi tokens such as ETHFI, HYPE and SKY falling roughly 3% since midnight UTC, even as BTC stabilized after its weekend losses.

In derivatives markets, more than $400 million in leveraged crypto positions have been liquidated over the past 24 hours, including over $280 million in long positions—the largest flush since late February—highlighting the pressure on bullish traders.

Open interest in tokenized gold futures like PAXG has increased by 4%, signaling a rotation toward commodities. By contrast, Ethereum futures open interest has seen only modest gains.

On Hyperliquid, commodity-linked perpetual contracts tied to crude oil, gold and silver have climbed into the top ranks by open interest, overtaking major crypto assets such as XRP and reflecting a shift in market focus.

Sentiment mixed, volatility climbs

Funding rates show a mixed sentiment backdrop. Bearish positioning is building across altcoins including XRP, BNB, SOL, TRX, DOGE and ADA, while BTC and select assets such as BCH and LINK continue to show positive funding, indicating ongoing demand.

Bitcoin’s 30-day implied volatility has climbed to 60% from 53% last week, pointing to increased uncertainty. Ether’s volatility has surged to 84%, its highest level since early February.

Options markets are also leaning defensive. On Deribit, bitcoin put options are trading at a premium to calls, signaling strong demand for downside protection. Block trades highlight growing interest in bearish strategies and volatility plays.

Diverging performance

In spot markets, DeFi tokens are leading losses, with CoinDesk’s DeFi Select Index down 0.75% on the day, while broader altcoin and meme indices are also slightly lower.

In contrast, privacy-focused tokens such as DASH, NIGHT and XMR have gained between 3% and 5%, supported by improving sentiment and clearer regulatory outlooks.

CoinMarketCap’s Altcoin Season Index currently stands at 49, slightly below last week’s reading but well above last month’s lows, suggesting a more balanced market environment.

At the same time, the average relative strength index (RSI) across altcoins has moved into oversold territory, indicating the potential for a short-term bounce.

For now, bitcoin remains range-bound, with traders watching whether it can reclaim $70,000 and close the CME gap, or if macro pressures will continue to weigh on price action.