Bitcoin’s rally has lost momentum below the $80,000 barrier, dragging ether lower and signaling a broader shift toward caution as traders scale back risk amid softer macro and derivatives signals.

The crypto market posted a second consecutive day of declines on Tuesday, with bitcoin trading near $75,800 and ether slipping roughly 0.75% since midnight UTC. The pullback follows multiple failed attempts to break above the $80,000 resistance level over the past week, including a rejection during Monday’s Asian session.

Last week’s surge—from $70,000 to nearly $79,500—now appears to be losing steam. A number of key indicators have turned bearish, including the Coinbase Premium Index, which has dipped into negative territory, pointing to weakening demand from U.S. investors.

Macro conditions are also weighing on sentiment. Nasdaq 100 futures are down about 0.5%, while the U.S. dollar index is modestly higher. Meanwhile, ongoing geopolitical uncertainty—particularly stalled U.S.–Iran negotiations—has pushed Brent crude oil firmly above $105 per barrel.

In derivatives markets, activity is cooling. Total crypto futures open interest has declined by more than 1% to $120 billion over the past 24 hours, alongside a 3% drop in trading volume and an 8% decrease in liquidations. The trend suggests reduced participation and less aggressive positioning among traders.

Bitcoin’s derivatives data reinforces the cautious outlook. The options-to-futures open interest ratio has fallen to 57.5%, its lowest level since late January, indicating a growing preference for directional trades and expectations of near-term volatility. Futures open interest has also dropped over 9% from recent highs, while funding rates remain negative—largely reflecting institutional hedging rather than outright bearish bets.

Dogecoin stands out as a relative outlier, with open interest rising 6% in the past 24 hours to its highest level since October. Positive funding rates and stronger volume trends suggest traders are positioning for potential upside.

Elsewhere, solana and cardano continue to face heavy selling pressure, with negative cumulative volume deltas indicating that sellers are dominating order flow.

Despite the recent downturn, volatility expectations remain subdued. Bitcoin and ether’s 30-day implied volatility indices are hovering near three-month lows, signaling limited expectations for sharp price swings even as macro uncertainty persists. Options markets show a defensive tilt, with puts trading at a premium—particularly for bitcoin—while also hinting at potential relative strength in ether.

Trading activity remains concentrated around the $80,000 bitcoin strike, which continues to dominate both volume and open interest. Block trades have largely focused on hedging strategies, including risk reversals and put spreads in bitcoin, alongside straddles in ether.

Altcoins underperformed bitcoin during the session, with memecoins and DeFi tokens recording steeper losses. Zcash led declines among major altcoins, followed by chiliz and hyperliquid.

Still, there were pockets of strength. Apecoin surged more than 17% after a short squeeze wiped out roughly $1 million in bearish positions.

Overall, the market remains in a holding pattern. CoinMarketCap’s Altcoin Season Index stands at 39, reflecting neutral conditions as investors watch whether bitcoin can reclaim $80,000 or extend its slide toward the mid-$70,000 range.