Bitcoin was trading near $67,000 as the Easter long weekend began, holding in a tight range as the market navigated thin holiday liquidity and ongoing uncertainty around the US-Iran war. The Fear and Greed Index stood at just 9 out of 100, deep in Extreme Fear territory, reflecting how broadly suppressed investor sentiment remains.
The Good Friday closure of CME futures and US exchange-traded fund activity removed two of the most important sources of institutional demand from the market for a full day. Analysts noted that large Bitcoin holders continued distributing into the holiday period, further pressuring the price.
Options market structure adds a layer of mechanical risk. Heavy demand for downside protection in Deribit-listed put options between $68,000 and the mid-$50,000s has created what traders describe as a “negative gamma” zone just below current prices.
The concern is straightforward: if Bitcoin breaks below $68,000 sustainably, dealers who have sold those put options are forced to sell actual Bitcoin to hedge their exposure. That selling creates more downside, which forces more hedging, which creates a self-reinforcing spiral.
“A move into this zone could trigger accelerated selling as hedging flows reinforce downside momentum, turning what would otherwise be a gradual move into a sharper repricing, with a potential revisit of the $60k level,” analysts at one crypto research firm warned.
The March jobs report released on Friday, which showed 178,000 jobs added against expectations of just 59,000, had a muted effect on crypto prices. Bitcoin traded near $67,000 in the hour following the release, with bond yields rising more noticeably than risk assets.
The Ethereum Foundation completed its planned staking commitment this week, depositing the bulk of a planned $93 million in ETH to reach its 70,000 ETH target. The foundation had announced in February its intention to convert dormant treasury holdings into a yield-generating position.
Russia separately submitted legislation requiring residents to declare foreign crypto wallet activity to tax authorities starting July 1, 2026. The bill covers openings, closures and transactions, representing a significant tightening of Russia’s approach to digital asset reporting.
Bitcoin’s holiday weekend consolidation is unlikely to resolve decisively until the Iran situation develops one way or another. Trump’s April 6 deadline for Iran to reopen the Strait of Hormuz creates a potential binary event that crypto markets are watching as closely as oil and equity traders.
