Crypto Market Volatility: Bitcoin Rejected at $80K as Altcoins Slide

Volatility returned to the crypto market on Monday as Bitcoin (BTC) surged to nearly $79,500 before quickly reversing and dropping back to around $77,800. The price movement began around 23:00 UTC, coinciding with the opening of U.S. equity markets and CME Bitcoin futures—a time period often associated with increased market activity and sharp price swings.

By 05:30 UTC, Bitcoin failed to break through the key $80,000 resistance level, triggering a rapid 2% decline within an hour. This pullback occurred alongside rising macroeconomic tension, as oil prices climbed to $107 per barrel, their highest level since the U.S.-Iran ceasefire. The spike followed reports that U.S. President Donald Trump canceled planned diplomatic talks in Pakistan, adding uncertainty to global markets.

Ethereum (ETH) also faced downward pressure, trading near $2,320 after a 2.2% drop since midnight UTC. While ETH underperformed Bitcoin, several altcoins experienced even steeper losses during the selloff.

In the derivatives market, nearly $300 million in crypto futures positions were liquidated over the past 24 hours, largely impacting short traders caught off guard by Bitcoin’s brief rally. XRP futures saw a notable 2.5% increase in open interest, reaching a one-week high of 1.82 billion XRP. However, negative funding rates and weak cumulative volume delta suggest a bearish outlook across major cryptocurrencies.

Despite this, analysts note that Bitcoin’s negative funding rates may reflect institutional hedging rather than outright bearish sentiment. Meanwhile, Bitcoin and Ethereum implied volatility continues to decline, signaling relative market stability and supporting the potential for longer-term price growth.

Options data from Deribit shows strong interest in Bitcoin’s $80,000 call options, with over $1.5 billion in open interest. Positive dealer gamma at this level could limit volatility, as market makers may sell during rallies and buy during dips.

Altcoins were hit hardest, with Lido (LDO) plunging 17% and wiping out recent gains. Broader indices such as the CoinDesk 20 and DeFi sectors also declined, while a few tokens like PENGU, JUP, and CHZ posted gains. The Altcoin Season Index remains neutral at 39, indicating no clear dominance across the sector.