Bitcoin Slips to $64K as Iran Strikes, Profit-Taking and an Unconvinced Market Crash the Party

Bitcoin retreated to $64,000 after hitting a monthly high of $65,500 on Wednesday, as profit-taking and Iranian strikes on U.S. military bases in the Gulf triggered declines across crypto markets. At the time of writing, BTC traded at $64,162.29, down 1.1% since midnight UTC, while ether lost 1.7% over the same window. Crypto market maker Wintermute said bitcoin has failed twice this week to break above $65,000, with weak spot trading volumes suggesting the move lacks conviction. The Crypto Fear & Greed Index remains in "Extreme Fear" territory, according to Wintermute, and on-chain data from Glassnode has yet to signal a trend reversal.

The sell-off extended across most altcoins. PUMP and ZEC each fell 4.4% after Tuesday's strong rallies faded, a pattern observers described as highlighting a lack of liquidity in both directions. MORPHO was the standout, rising 3.5% as it targets the $2.20 resistance level. Robinhood Chain memecoin CASHCAT drew attention as its market cap retreated to $91 million, having reached $220 million in its first week. The broader move lower coincided with losses in U.S. equities; futures on the tech stock-dominant Nasdaq 100 index fell 0.25%, extending a downtrend that began 30 days ago.

Derivatives positioning reflected the bearish tilt. Open interest in XRP futures climbed to a 10-day high of 2.21 billion XRP even as the token's spot price dropped 0.6%, a combination typically read as growing bearish exposure. The 24-hour cumulative volume delta for XRP is negative, indicating short positions are being executed at market orders rather than passive limit orders. Ether's underperformance, by contrast, appeared driven by bullish plays unwinding rather than aggressive new short selling, with open interest declining to 14.35 million ETH from a five-week high of 14.45 million ETH hit on Wednesday. Open interest in SUI futures rose 15% to 654 million tokens.

Wintermute noted that traders are watching several potential catalysts, including Friday's Clarity Act hearing, the second-quarter options expiry and ongoing geopolitical tensions following a fifth day of strikes involving Iran.