Bitcoin traded below the 70000 level on Thursday, cooling after briefly testing that threshold during a strong US session earlier in the week. The largest cryptocurrency changed hands near 68600 in Asian trading hours, remaining locked within a range that has defined price action for most of February.
Since the beginning of the month, bitcoin has oscillated between approximately 62500 and 71100, struggling to establish a decisive breakout. Market participants note that a similar range earlier this year ended with a sharp reversal, when bitcoin failed to sustain higher levels and declined significantly in the weeks that followed. That backdrop continues to shape cautious positioning among traders.
While bitcoin stalled, several major altcoins posted outsized gains. Polkadot climbed more than 20 percent over a 24 hour period as investors positioned ahead of a scheduled reduction in network rewards set for March. The anticipated supply adjustment has drawn speculative interest, reinforcing demand for DOT in the short term.
Uniswap also advanced strongly, rising around 15 percent following a governance proposal aimed at increasing protocol revenue capture across selected layer two networks. The vote has renewed attention on the token’s value accrual model and its potential to generate more consistent returns for holders if approved and implemented.
In contrast, Cosmos declined by more than 6 percent, highlighting the uneven liquidity conditions across the altcoin market. The absence of a clear negative catalyst for ATOM underscored how quickly capital can rotate away from thinner tokens, especially when broader market conviction remains fragile.
Derivatives data reflected a gradual build up in leveraged exposure. Total crypto futures open interest rose above 100 billion dollars, outpacing the growth in overall market capitalization. Ethereum and Cardano futures saw notable increases in open interest, suggesting traders are deploying leverage in anticipation of continued upside.
Despite the expansion in futures positioning, volatility indicators for bitcoin and ethereum remained near recent lows. Implied volatility levels signaled relatively calm conditions, even as options markets showed persistent demand for downside protection. On major derivatives venues, the 60000 bitcoin put option continued to hold one of the largest notional open interest positions, indicating that some investors remain hedged against a deeper correction.
Funding rates across perpetual futures contracts stabilized slightly above neutral, pointing to a mild bias toward long positions without signaling excessive euphoria. This balance suggests that traders are constructive but cautious, awaiting a clearer directional catalyst.
The broader macro environment also played a role in shaping sentiment. US equity index futures were largely unchanged, and mixed reactions to major corporate earnings reports tempered risk appetite. For now, bitcoin’s inability to reclaim and sustain levels above 70000 leaves the market in consolidation mode, while selective altcoins capture short term momentum within a still range bound structure.
