Crypto News: Bitcoin, Ether Edge Higher as Altcoins Slide; Liquidations Top $218M Amid Cautious Sentiment

Key TakeawaysBTC trades near $67,000, ETH near $1,970, with volatility fading after the Feb. 5 selloff.Open interest stabilizes at $15.38B, funding flips positive, but short-term options hedging remains elevated.$218M in liquidations over 24 hours; 97 of top 100 tokens are in the red.Market structure suggests consolidation, not yet a confirmed reversal.Bitcoin and Ether posted modest gains overnight, but broader altcoin weakness and elevated derivatives hedging show traders remain cautious.Bitcoin (BTC) was recently trading near $67,000 after briefly dipping to $66,000 midweek. Ether (ETH) rebounded from $1,924 to trade around $1,970 but continues to struggle below the key $2,000 psychological resistance.The broader market, however, tells a different story. Most altcoins remain under pressure, reflecting fragile sentiment and thin liquidity conditions.Volatility Cools After Early February SelloffSince the sharp correction on Feb. 5, crypto markets have entered a two-week consolidation phase. The muted price action has left investors debating whether the market is forming a macro bottom — or simply pausing before another leg lower.From a macro trend perspective, Bitcoin remains in a downtrend since its October record high of $126,600. The pattern of lower highs and lower lows persists, punctuated by choppy consolidation.A potential catalyst failed to materialize Wednesday, as the World Liberty Financial forum at Mar-a-Lago — attended by senior policymakers and financial executives — did not generate bullish momentum.Derivatives Signal Stabilization — With CautionMarket positioning shows signs of stabilization following a leverage flush earlier this month.Open interest: $15.38 billion, suggesting a steady base after deleveraging.Funding rates: Flipped flat-to-positive (Binance near 4%), indicating mild retail confidence.Three-month basis: Holding around 3%, reflecting restrained institutional positioning.Options market: Call/put volumes at near 50/50 balance.However, short-term implied volatility remains elevated. The one-week 25-delta skew has risen to 12%, and the front-end volatility curve remains in backwardation — meaning traders are still paying a premium for immediate downside protection.This “panic premium” suggests that while price action is calm, participants are not fully convinced risk has dissipated.Liquidations Stay ElevatedAccording to CoinGlass, crypto markets saw $218 million in liquidations over the past 24 hours, heavily skewed toward long positions (77% longs vs. 23% shorts).Top liquidation totals:BTC: $75 millionETH: $53 millionOther assets: $22 millionThe Binance liquidation heatmap highlights $67,400 as a key level to watch on the upside.Altcoins Struggle in Low-Liquidity ConditionsWhile BTC and ETH edged higher, altcoins broadly underperformed.World Liberty Financial (WLFI) fell over 10% in a “sell-the-news” reaction.Axie Infinity (AXS) dropped 5.9%, retesting early-February lows.Morpho (MORPHO) declined 4.2%, erasing prior gains.A striking 97 of the top 100 cryptocurrencies (excluding stablecoins and tokenized gold) are trading lower over the past 24 hours.Sentiment Remains in “Extreme Fear”The Crypto Fear & Greed Index sits at 11/100, slightly above February’s low of 6 but still deep in “extreme fear” territory.Despite improving derivatives metrics, weak breadth and persistent hedging demand indicate traders are defensive.Bottom LineBitcoin and Ether are stabilizing, but the broader market remains fragile. Derivatives positioning suggests the leverage flush may be complete, yet elevated short-term volatility and weak altcoin participation signal caution.Until BTC reclaims higher resistance levels and altcoin breadth improves, the current environment appears more like consolidation than confirmed recovery.