Crypto markets extended losses as weakness in technology stocks and a pullback in gold weighed on risk sentiment, with bitcoin sliding to 68,000 dollars and strengthening its correlation with the Nasdaq.
Bitcoin declined about 1.25 percent over the past 24 hours, tracking a drop in Nasdaq futures of roughly 0.55 percent. At the same time, gold fell 2.4 percent, continuing its correction after failing to hold support above the 5,000 dollar level. The synchronized retreat across digital assets, equities, and precious metals reflects a broader repositioning among investors amid renewed macro uncertainty.
One notable shift has been bitcoin’s changing relationship with technology stocks. Since early February, the correlation coefficient between bitcoin and the Nasdaq has swung from negative 0.68 to positive 0.72. The move underscores bitcoin’s renewed alignment with high growth equities, reinforcing its behavior as a risk asset rather than a defensive hedge during the current cycle.
Altcoins also faced pressure, with memecoins leading the downturn. Tokens such as PEPE, DOGE, and TRUMP posted losses between 3.5 percent and 4.5 percent. The weakness in speculative segments of the market highlights declining appetite for higher volatility assets during periods of broader risk aversion.
In derivatives markets, futures positioning signaled continued deleveraging. Industry wide notional open interest fell 1.5 percent to around 93 billion dollars over 24 hours, marking multi month lows. Exchanges liquidated approximately 229 million dollars in leveraged positions, with long positions accounting for the majority of forced closures.
Open interest in DOGE futures dropped about 4 percent, while contracts tied to PEPE, LINK, and AVAX declined between 3 percent and 5 percent. Meanwhile, futures open interest in HYPE, a recent outperformer, cooled to its lowest level since early December, suggesting profit taking after its relative strength during previous market stress.
Implied volatility metrics for bitcoin and ether have retreated from recent monthly highs, indicating that the peak of market panic may have passed for now. However, options markets continue to show a preference for protective puts over calls, reflecting lingering downside hedging demand.
Bitcoin dominance, which measures bitcoin’s share of total crypto market capitalization, has ranged between 57.4 percent and 60.1 percent since September. Over the past week, AI linked token MORPHO gained more than 20 percent, while privacy focused ZEC rose nearly 19 percent, outperforming the broader market.
The convergence of crypto with technology equities suggests that macro drivers remain central to digital asset performance. With both gold and growth stocks retreating, traders are closely watching for a catalyst that could stabilize sentiment and break the current range across risk markets.
