Bitcoin Bounces Back: Crypto Chaos or Just a Monday Morning?

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Markets

What to know:

  • In what can only be described as a classic case of “Oops, I Did It Again,” Bitcoin wobbled down to $64,270 from an impressive $67,700 shortly after the clock struck midnight UTC, before regaining its composure and bouncing back to $66,300. S&P 500 futures, presumably in a show of solidarity, decided to mimic this dance.
  • Gold, the shiny yellow metal that always knows how to throw a party, reached heights not seen since January 30, all thanks to President Trump’s announcement of new 15% global tariffs and a bit of U.S.-Iran tension to spice things up.
  • SOL and SUI, however, took a tumble of 7%-8% in a liquidity pool that seemed about as deep as a puddle, contributing to a rather dramatic $270 million in altcoin liquidations. Thankfully, some tokens decided they weren’t done dancing and cut their losses during European hours.

The crypto market, in a rare fit of volatility reminiscent of a cat on a hot tin roof, experienced quite the rollercoaster ride during Asia hours on Monday. Bitcoin, in a dramatic swoon, plummeted more than 5% to $64,270, only to launch itself back up to $66,300 by 11:00 UTC-because why not keep everyone on their toes?

This selloff and subsequent bounce were almost poetically synchronized with U.S. equities, as futures tracking the S&P 500 index dived by 0.84% after opening on Sunday evening, only to start recovering a mere five hours later. Talk about a dramatic entrance!

Gold futures, not to be outdone, rose like a phoenix from the ashes on Sunday evening’s open, hitting the highest point since January 30, before giving back some of those gains during European hours, proving that even gold has its off days.

The uptick in precious metals amidst the underwhelming performance of risk assets came after Trump’s grand plans for new tariffs and an increased military presence near Iran sent investors scurrying toward the safety of haven assets like a squirrel avoiding a rainstorm.

Meanwhile, altcoins faced a liquidity drought overnight, as SOL and friends stumbled by 7% to 8% before attempting a comeback in European hours-a move that led to a staggering $270 million in altcoin liquidations, according to CoinGlass. It seems even the crypto world isn’t immune to a little drama!

Derivatives positioning

  • Demand for leveraged products is about as lively as a sloth on a Sunday afternoon, with total crypto futures open interest languishing below $100 billion for over two weeks. Someone get these traders a coffee!
  • Liquidations have been wreaking havoc as well. In the past 24 hours, crypto futures bets worth $500 million have been forcibly closed by exchanges due to margin shortages-talk about a rude awakening!
  • Traders seem to prefer the allure of traditional assets, as evidenced by the surge in futures linked to gold. For example, open interest in Tether gold (XAUT) futures has increased by 14% in just 24 hours, while BTC, ETH, SOL, HYPE, DOGE, and others appear to be on a capital diet.
  • ZEC and CRO are throwing a small celebration as the only tokens with a positive 24-hour cumulative volume delta (CVD), indicating buyer dominance. Meanwhile, BTC and its major pals are feeling the heat with negative CVDs, showing that sellers are clearly having a field day.
  • Bitcoin’s 30-day implied volatility index, BVIV, has jumped 9% to over 60%, signaling renewed jitters, like a cat hearing a cucumber drop.
  • Traders, in a fit of optimism, have been chasing bitcoin put options at levels $58,000, $60,000, and $62,000 as Trump’s new tariffs add a delightful twist of uncertainty to the already spicy market stew.
  • On Deribit, bitcoin and ether puts are trading at a premium to calls across all time frames, suggesting that lingering fears of disaster are keeping a few folks awake at night.

Token talk

  • The altcoin market is still nursing its wounds on Monday after an exaggerated selloff triggered by the weak performance of bitcoin and U.S. equities. Ouch!
  • Low liquidity conditions turned pump.fun’s native PUMP token into quite the drama queen, losing 8.5% of its value before deciding it was time to bounce back, while layer zero (ZRO) kicked off its own dramatic exit early on Sunday, losing a staggering 16.5% over 24 hours before finally pulling itself together at 04:00 UTC.
  • A select few tokens decided to defy the odds and outperform the wider market, with restaking token ETHFI soaring by more than 10% from Monday morning’s low. Bravo!
  • Telegram-linked toncoin (TON) displayed commendable stability overnight, managing a mere 3.6% drop before bouncing back by 4.9%. A true champion!
  • CoinDesk’s DeFi Select Index (DFX) emerged as the best-performing benchmark over the past 24 hours, losing just 1.84%, while the CoinDesk Smart Contract Platform Select Index and CoinDesk Computing Select Index lost 3.56% and 3.23%, proving that some indices are simply better at rolling with the punches.
  • As February unfolds, the altcoin market has been following bitcoin around like a puppy, though it seems to lack the liquidity necessary to keep things interesting. If bitcoin manages to pull off a local low and bounce back above $70,000, several altcoins might just be primed for a spectacular upside-assuming they don’t trip over their own feet first!

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2026-02-23 15:16