Here’s a paraphrased version:

Bitcoin and altcoins declined after President Donald Trump said the ceasefire agreement with Iran was “over” following renewed airstrikes between the U.S. and Iran.

Crypto markets moved lower on Wednesday as escalating geopolitical tensions triggered a risk-off response among investors. The CoinDesk 20 Index fell 2.9% since the start of the UTC day, with nearly every token in the index posting losses.

Speaking to NATO leaders, Trump said the ceasefire with Iran had ended and described further negotiations as a “waste of time,” although reports indicated discussions were still ongoing.

The U.S. Central Command said it targeted more than 60 Islamic Revolutionary Guard Corps vessels to prevent disruptions to global shipping routes. Iran responded with attacks on locations in Kuwait and Bahrain.

Renewed conflict concerns pushed the U.S. Dollar Index (DXY) higher as markets assessed the potential inflation impact. Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market value, both dropped more than 2%.

Losses were even greater among smaller altcoins with lower liquidity, including JUP, ETHFI, and PUMP, which each declined more than 5%.

Traditional markets also weakened, with Nasdaq 100 and S&P 500 futures falling as much as 1.5%.

Derivatives market update

Although Bitcoin dropped toward $62,000, the asset remains up around 6% for the month. One positive sign came from derivatives markets, where traders do not appear to be aggressively betting against the recent recovery. Bitcoin futures open interest declined to approximately 730,000 BTC from more than 740,000 BTC a day earlier.

Ether’s derivatives market showed more weakness. Futures open interest remained near 13.95 million ETH despite the price decline triggering around $90 million in liquidations. Bitcoin liquidations over the past 24 hours totaled slightly above $100 million.

Canton Network’s CC token experienced further selling pressure, falling to its lowest level since January while futures open interest climbed to a two-week high. The combination of falling prices, rising open interest, and deeply negative funding rates near -20% suggests traders may be increasing short positions.

Across major cryptocurrencies, including Bitcoin and Ether, bearish pressure has increased, reflected by negative 24-hour open interest-adjusted cumulative volume delta (CVD). A negative reading indicates that sellers are dominating through market orders rather than waiting for buyers through limit orders.

The latest decline in BTC and ETH has also increased demand for protective options. Their 30-day implied volatility indexes, BVIV and EVIV, rose for a second consecutive day.

Options markets on Deribit showed growing downside protection demand, with one-week put skew rising to nearly 20%, compared with 16% the previous day. A higher put skew indicates traders are paying more for downside protection against potential price declines in assets such as Bitcoin and Ether.

Despite the bearish tone, Bitcoin call options at the $80,000 strike recorded the highest trading activity over the past 24 hours, showing some traders still expect a future recovery.

Altcoin market update

The altcoin sector faced heavier losses, with approximately $350 million of the $450 million in liquidations coming from altcoin trading pairs, according to CoinGlass.

Solana (SOL) has fully erased its recent gains, falling back to around $77 after reaching nearly $84 earlier in the week.

One exception was MORPHO, the DeFi token that gained about 4% since midnight as the protocol’s total value locked (TVL) reached a record 4 million ETH, according to DefiLlama.

A potential positive signal for altcoins is that several tokens have entered oversold conditions. The average relative strength index (RSI) across the sector has fallen to 40 from 47 a day earlier, suggesting some assets may be approaching levels where buyers could begin to step in.