Bitcoin drops toward $68,000 as demand weakens and whales sell

Glassnode data shows soft participation, while a negative gamma setup below $68,000 leaves BTC exposed to a faster move toward $60,000.

What to know:

• Bitcoin has repeatedly failed to hold above $70,000 and is now sliding toward $68,000, testing the lower end of a trading range that has held since late March.
• On-chain and trading data show weak underlying demand and ongoing selling by large holders, leaving the market dependent on macro flows and derivatives positioning rather than broad-based accumulation.
• Derivatives and prediction markets are increasingly pricing in downside risk, with traders paying more for protection and assigning high odds that bitcoin will fall to $65,000 or lower in April.

Bitcoin BTC$68,767.57 slid toward $68,000 on Tuesday, with traditional markets closed in Hong Kong for a long weekend, as repeated failures near $70,000 left the bitcoin market vulnerable to a break lower.

The drop came after another failed push above $70,000, with prices slipping quickly once they approached the lower end of the $65,000 to $73,000 range that has defined trading since late March. Intraday losses accelerated near that boundary, highlighting how little support exists when momentum turns.

That calm is not being driven by strong demand. Recent Glassnode data shows softer trading volumes and subdued onchain activity even as prices recover, indicating limited participation behind the move.

Meanwhile, in a note to CoinDesk, crypto-native trading and liquidity firm Caladan pointed to negative demand trends and ongoing distribution by large holders, leaving bitcoin reliant on macro-driven flows and derivatives positioning rather than broad-based accumulation.

The result is a market that looks stable on the surface but is structurally fragile if that balance shifts.

That vulnerability is becoming more visible in derivatives markets. Options data shows traders are increasingly paying up for downside protection, with implied volatility holding above realized levels, a sign that investors are bracing for a larger move even as spot prices remain rangebound.

Analysts who spoke to CoinDesk earlier point to a negative gamma setup below roughly $68,000, where market makers may be forced to sell bitcoin as prices fall in order to hedge their exposure.

The danger: this dynamic can accelerate declines, transforming a gradual move into a sharper, self-reinforcing rout that could drag prices toward the $60,000 level if support breaks.

Prediction markets reflect a similar shift in sentiment. On Polymarket, traders are assigning a 68% probability that bitcoin will trade at or below $65,000 in April, while higher targets such as $80,000 have seen sharply declining odds.

Taken together, the signals point to a market where the calm may hold, but only until key levels give way.

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Options data shows traders are bracing for a sharp bitcoin drop as weak demand and fragile positioning leave the market exposed to a break below key levels, a report from Bitfinex shows.

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• Bitcoin’s seemingly stable trading range masks growing downside risk in derivatives markets, according to Bitfinex, where traders are paying a premium for protection and positioning for a sharper move lower.
• A negative gamma setup below about $68,000 could force market makers to sell more bitcoin as prices fall, potentially accelerating...

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