Bitcoin and ether prices slid on Monday as geopolitical tensions in the Middle East rattled global markets. Brent crude surged past $100 a barrel following an order from U.S. President Donald Trump to blockade the Strait of Hormuz, triggering a defensive shift among crypto traders.
Bitcoin remains trapped in a monthslong trading range, failing to break through $74,000 resistance. While the asset has held above $63,000, market participants are increasingly pivoting toward downside protection through put options.
Derivatives signal defensive posture
Futures data indicates a market-wide retreat from risk. Open interest in major tokens, including bitcoin and ether, declined over the last 24 hours. While oil prices jumped 5%, traders showed little interest in hedging through traditional crude futures on Binance, opting instead for a cautious stance on crypto assets.
Data from the decentralized platform Hyperliquid shows aggregate open interest in Brent and WTI futures exceeding $1 billion. However, analysts point to negative perpetual funding rates and a negative cumulative volume delta across most top 25 tokens as evidence of aggressive selling. This suggests that recent capital inflows into futures are being driven by traders building short exposure rather than betting on a recovery.
Options markets reinforce this bearish sentiment. Bitcoin puts are currently trading at a premium of five points or more across all time frames. Ether puts are also elevated, reflecting a broader demand for insurance against further volatility.
Despite the caution surrounding major assets, speculative interest has migrated to niche corners of the market. The CoinDesk Memecoin Index and the DeFi Select Index finished the day in the green, bucking the downward trend of the broader crypto market.
DeFi token AAVE led the rally with a 5% gain, while JUP and HYPE added roughly 2%. Memecoins saw even steeper gains, with tokens like BROCCOLI and BAN posting double-digit increases. This rotation suggests that while investors are wary of major-cap assets, they remain willing to chase high-risk speculative plays in an otherwise flat market.
