Bitcoin declines alongside ether and solana, as decred and AI-related tokens push higher.

Positioning across crypto derivatives markets suggests traders are bracing for additional downside, even as select tokens buck the broader trend.

Decred (DCR), a cryptocurrency focused on autonomous governance and decentralized decision-making, extended its rally despite weakness in the wider market led by Bitcoin. DCR climbed 16% over the past 24 hours to trade at $34.58 — its highest level since November, according to CoinDesk data. Over the past four weeks, it has surged more than 80%, making it the top performer among the 100 largest tokens by market value, following a Feb. 8 overhaul of its treasury framework.

Meanwhile, bitcoin hovered near $67,000, struggling to build on Wednesday’s rebound to $70,000. The largest cryptocurrency is down about 2% on the day, with Ethereum (ETH), XRP, Solana (SOL) and the CoinDesk 20 Index posting comparable losses.

Despite signs of improving institutional participation, sentiment remains cautious. Traders continue to favor protective strategies, particularly bitcoin put options. Crypto exchange Deribit reported steady demand from ETF holders and corporate treasuries for $60,000-strike bitcoin puts expiring in six to 12 months.

Analysts say capital inflows are stabilizing but not yet strong enough to signal a decisive shift in trend. Vikram Subburaj, CEO of crypto exchange Giottus, advised investors to avoid aggressive positioning. “Long-term investors may consider staggered accumulation (SIP-style allocation) near support zones rather than deploying lump sums at resistance,” he said in an email.

Derivatives Snapshot

Crypto futures activity reflects fading momentum after midweek optimism:

• Aggregate open interest (OI) across crypto futures has slipped back to multi-month lows near $93.5 billion, underscoring how quickly enthusiasm from bitcoin’s bounce evaporated.
• Bitcoin and ether have both seen notable capital outflows from futures markets, with notional OI declining more sharply than spot prices.
• The market-wide long-short ratio continues to favor bearish bets.
• Open interest in Tether Gold (XAUT) fell another 11%, extending its weekly slide and suggesting waning interest in gold-backed digital assets.
• Perpetual funding rates for major tokens, including BTC and ETH, have turned negative again, signaling dominance of short positioning.
• Participation in CME Group bitcoin futures has dropped, with open interest hitting its lowest level of the year.
• On Deribit, one-month bitcoin puts are trading at roughly a 7% premium to calls, reflecting persistent downside hedging demand. Ether options show a similar skew.
• Bitcoin put spreads — a bearish strategy — accounted for 75% of block trade flow in the past 24 hours. In ether, traders favored both put spreads and straddles, the latter indicating expectations of heightened volatility.

Token Developments

Elsewhere, the DFINITY Foundation proposed burning 20% of revenue generated by its cloud engine, adding a deflationary mechanism to Internet Computer (ICP) that ties token supply more directly to network activity. The remaining 80% would be distributed to node operators, replacing fixed token emissions with performance-based incentives.

ICP gained roughly 6% over the past 24 hours, rising from $2.41 to around $2.56, though still below the $2.70 intraday high. Price action appears influenced not only by the governance proposal but also by upbeat earnings from Nvidia, which bolstered sentiment across artificial intelligence-linked assets. CEO Jensen Huang reiterated that AI adoption continues to accelerate.

ICP, often positioned as a decentralized alternative to traditional cloud infrastructure for AI applications, was joined in gains by other AI-themed tokens such as Render (RENDER) and Bittensor (TAO), as investors rotated back into the sector.