SKN | Bitcoin Slides to $90,000 as Altcoins Sink in Thin Trading

Bitcoin slipped back below the $90,000 mark on Thursday as fragile liquidity conditions amplified downside moves across the broader crypto market, leaving major tokens range-bound and altcoins sharply underperforming.

At the time of writing, Bitcoin was trading near $90,000 after falling from an intraday high of $91,570, its lowest level in five days. The move marked a third failed attempt to break through resistance near $94,500  a ceiling that has capped rallies since early December  reinforcing the view that bitcoin remains trapped in a broad consolidation phase.

Bitcoin stuck in a well-defined range

Price action over the past six weeks has carved out a clear trading band between roughly $85,000 and $94,500. That range emerged after bitcoin’s sharp autumn correction, when prices slid from a record high near $126,000 in early October to lows around $80,600 by late November.

The repeated rejection near $94,500 has weighed on sentiment, particularly as upside attempts continue to fade during periods of thin liquidity. While the range has provided relative stability, it has also discouraged aggressive positioning, leaving the market vulnerable to abrupt swings when leverage unwinds.

Despite the pullback, bitcoin’s decline has been comparatively orderly, with spot prices holding above key medium-term support levels. This contrasts sharply with the behavior of altcoins, where thinner order books have magnified losses.

Altcoins buckle as liquidity evaporates

Altcoins bore the brunt of the selling on Thursday. Privacy-focused Zcash plunged more than 16% during Asian and European hours, while tokens such as PUMP and DASH posted double-digit losses.

The moves were exacerbated by a $12 million long liquidation in ZEC futures, which cascaded through shallow order books and triggered outsized price declines. With limited bids available, even modest forced selling had an exaggerated impact — a recurring feature of the altcoin market since the large derivatives washout seen in October.

Sector performance reflected that stress. Decentralized finance tokens were among the weakest, with the DeFi index dropping more than 3%, closely followed by memecoins. By comparison, the CoinDesk 20 index fell just over 2%, highlighting how larger-cap assets have been more resilient amid the liquidity drought.

CoinMarketCap’s altcoin season indicator remains deeply bearish at 23 out of 100, underscoring the lack of broad participation and reinforcing bitcoin’s dominance.

Derivatives point to caution, not panic

In derivatives markets, roughly $400 million in leveraged crypto positions were liquidated over the past 24 hours, with long positions accounting for the majority. While significant, the figure does not suggest systemic stress.

Overall open interest across crypto futures slipped to about $140 billion from recent highs, indicating some de-risking. Bitcoin futures open interest, however, edged higher alongside positive funding rates, hinting that some traders are cautiously buying the dip.

Elsewhere, open interest in ether, solana, XRP and several altcoins declined, pointing to capital rotating away from higher-beta exposure. On options venue Deribit, puts continue to trade at a premium to calls for both bitcoin and ether, reflecting lingering downside protection demand — though that bias has softened compared with last month.

Macro headwinds add pressure

Beyond crypto-specific factors, macro conditions remain a headwind. U.S. equity index futures were modestly lower, while the dollar index has risen more than 1% since late December. A firmer dollar and softer equity tone typically weigh on risk assets, particularly in environments where liquidity is already constrained.

Looking ahead

For now, bitcoin’s ability to hold the lower end of its $85,000–$94,500 range remains the key focus. A decisive break in either direction will likely require a catalyst — either a shift in macro conditions or a meaningful return of spot liquidity.

Until then, thin trading conditions mean volatility risks remain skewed toward sudden, exaggerated moves, especially in altcoins where depth has yet to recover.