Bitcoin Slips Below $70,000 as Fed Rate Pause and Oil Surge Pressure Markets

Key Takeaways

• Bitcoin fell to $70,000 as the Federal Reserve held interest rates steady and geopolitical tensions drove energy prices higher
• Nearly $600 million in leveraged crypto futures liquidations occurred in 24 hours, particularly wiping out long positions.
• Altcoins struggled on thin liquidity, though NEO and ETHFI recorded gains.
• Fear metrics spiked with bitcoin volatility jumping over 5%.

Bitcoin fell below $70,000 on Thursday as soaring energy prices and the Federal Reserve’s decision to hold interest rates steady weighed on risk assets globally.

BTC traded near $70,000, down 1.6% since midnight UTC, while Ether declined 1.7% to $2,160. The moves tracked a broader market selloff after the Fed maintained rates in the 3.50-3.75% range on Wednesday, bolstering the U.S. dollar and triggering risk-off sentiment across equities and crypto.

Energy markets amplified the pressure. Brent crude oil surged to $114, and Oman crude jumped to $150 after Iran attacked key Gulf energy infrastructure following an Israeli strike on its South Pars gas field. European natural gas futures spiked approximately 25% to above $78 per MWh. Nasdaq 100 futures fell around 0.3%, underscoring the broader market selloff.

Liquidations Hit $600 Million

The overnight decline sparked significant derivative liquidations, with nearly $600 million in leveraged crypto futures bets wiped out over 24 hours. Long positions accounted for most of the losses, indicating bullish traders were caught off guard.

Futures open interest fell 5.6% to $106.90 billion. Ether futures open interest dropped 9% alongside a 6% decline in ETH’s spot price, signaling capital outflows. Negative funding rates across BTC, ETH, BNB, SOL, and other tokens indicate bearish short positions are gaining favor again.

Fear metrics also deteriorated. Volmex’s BVIV, which measures 30-day implied bitcoin volatility, jumped over 5% to 58.36%, ending a week-long decline. 

Altcoins Struggle on Thin Liquidity

The altcoin market faced headwinds from limited liquidity in a fractured ecosystem still recovering from October’s $19 billion leverage wipeout. Bittensor fell 8.8%, and hyperliquid declined 6.5% since midnight.

A few tokens bucked the trend. NEO gained 4.2% while restaking token ETHFI added 1.5% to reach $0.55, continuing its strong start to 2026. The CoinDesk 20 fell around 1%, while the DeFi Select Index and CoinDesk Memecoin Index declined 1.4% and 2%, respectively.

What’s Next

The market remains caught between macro headwinds from geopolitical tensions and monetary policy uncertainty. Bitcoin’s struggles below $70,000 suggest further volatility could test support levels as investors reassess risk exposure amid elevated energy costs and the Fed’s extended pause on rate cuts.