Bearish sentiment builds in crypto as volatility and hedging rise

Bitcoin’s brief rally faded amid war-driven oil price surge, rising volatility and declining futures interest, signaling growing caution across crypto markets. What to know : BTC spiked to $68,300 before falling to $66,500, while implied volatility (as measured by the BVIV index) climbed to 58%, pointing to more turbulence ahead. Futures open interest has dropped over 18% this year, with broad declines across major tokens indicating capital outflows. Options markets show strong demand for downside protection, with the $60,000 BTC put the most crowded trade.