Bitcoin steadies following an overnight crypto selloff, rebounding toward $66,000.

Bitcoin swung sharply during thin Asian trading hours on Monday, dropping to $64,270 shortly after midnight UTC before rebounding to around $66,300 by late morning. The more than 5% slide — followed by a swift recovery — came as low liquidity amplified moves tied to renewed U.S. tariff threats and rising geopolitical tensions.

The price action mirrored developments in traditional markets. Futures linked to the S&P 500 fell 0.84% after opening Sunday evening before beginning to recover roughly five hours later. Meanwhile, gold futures jumped to their highest level since Jan. 30 at the open before trimming gains during European hours, with silver moving in tandem.

The bid for precious metals and weakness in risk assets followed comments from U.S. President Donald Trump outlining plans for new 15% global tariffs on trading partners, alongside reports of an increased U.S. military presence near Iran. The developments prompted a shift toward perceived safe-haven assets.

Altcoins were hit harder in the low-liquidity environment. Solana (SOL) and SUI fell between 7% and 8% overnight before rebounding during European trading, triggering roughly $270 million in altcoin liquidations, according to CoinGlass.

Derivatives positioning remains fragile

Leverage appetite across crypto markets continues to look subdued. Total futures open interest has remained below $100 billion for more than two weeks, suggesting cautious positioning.

Over the past 24 hours, about $500 million in crypto futures positions were forcibly liquidated as traders ran into margin shortages. At the same time, capital rotation has favored tokens tied to traditional assets. Open interest in Tether Gold (XAUT) futures rose 14% in 24 hours, even as bitcoin, ether, solana, HYPE and dogecoin saw outflows.

ZEC and CRO were the only tokens posting a positive 24-hour cumulative volume delta (CVD), indicating buyer dominance. In contrast, bitcoin and most major tokens recorded negative CVDs, signaling stronger selling pressure.

Bitcoin’s 30-day implied volatility index (BVIV) climbed 9% to above 60%, reflecting renewed market anxiety. On options exchange Deribit, bitcoin and ether put options traded at a premium to calls across maturities, highlighting persistent downside hedging. Traders showed particular demand for puts at $58,000, $60,000 and $62,000 strike levels following the tariff announcement.

Altcoins struggle in thin markets

The broader altcoin market remained under pressure after what appeared to be an exaggerated selloff driven by bitcoin’s weakness and declines in U.S. equities.

Low liquidity conditions contributed to pump.fun’s PUMP token dropping 8.5% before recovering, while LayerZero’s ZRO slid 16.5% over 24 hours before stabilizing around 04:00 UTC. A handful of tokens outperformed, including restaking protocol ETHFI, which rose more than 10% from Monday morning lows.

Telegram-linked toncoin (TON) showed relative resilience, falling 3.6% overnight before rebounding nearly 5%.

Among broader gauges, the CoinDesk DeFi Select Index (DFX) outperformed major benchmarks, declining just 1.84% over 24 hours. The CoinDesk Smart Contract Platform Select Index and CoinDesk Computing Select Index fell 3.56% and 3.23%, respectively.

Throughout February, altcoins have largely tracked bitcoin’s direction, but thin order books have magnified swings. Should bitcoin establish a local bottom and reclaim levels above $70,000, several altcoins could be positioned for a stronger recovery after early-month liquidity was flushed from the market.