Bitcoin reverses from $79,500 as oil surge triggers broader crypto selloff
Bitcoin dropped 2% from $79,500 after failing to break $80,000, coinciding with rising oil prices and a broader crypto selloff.Summary
Bitcoin experienced a significant reversal, falling from a high of $79,500 to around $77,800, a 2% drop, after failing to breach the $80,000 resistance level. This downturn occurred as oil prices surged, with Brent crude reaching $107 per barrel due to geopolitical tensions involving the U.S. and Iran. The broader cryptocurrency market followed suit, with altcoins leading the losses. Lido (LDO) saw a substantial 17% decline, and major sector indexes fell by up to 2.5%. The selloff intensified around 05:30 UTC, coinciding with the opening of U.S. equity and CME bitcoin futures markets, a period known for heightened volatility. Derivatives markets saw significant liquidations, with nearly $300 million in crypto futures bets liquidated in 24 hours, primarily bearish short positions. While open interest in XRP futures increased, suggesting bearish sentiment, analysts noted that persistent negative funding rates in Bitcoin might be due to institutional hedging rather than outright bearish bets. The hack of a Sui-based DeFi protocol also contributed to negative sentiment in specific altcoin markets.
(Source：CoinDesk)