Crypto News: Bitcoin Reverses From $79,500 as Oil Surge and Failed $80,000 Break Trigger Broad Crypto Selloff

Key Takeaways Bitcoin spiked to $79,480 before reversing sharply to $77,800, dropping 2% in an hour after failing to break $80,000, currently trading around $78,154Brent crude hit $107 per barrel -- its highest since the US-Iran ceasefire began -- after Trump canceled plans to send officials for Pakistan talks, weighing on risk sentimentNearly $300 million in crypto futures positions were liquidated in 24 hours, the majority being short positions caught in the brief rally toward $79,500Lido (LDO) led altcoin losses with a 17% drop; the Smart Contract Platform Select Index fell 2.5% and the DeFi Select Index lost 2.3%Sui-based DeFi protocol Scallop was hacked for approximately 150,000 SUI tokens worth just over $140,000Bitcoin's $80,000 strike call option holds over $1.5 billion in notional open interest on Deribit, with positive dealer gamma suggesting market makers could sell into a breakout and buy the dip, dampening volatility near that level Crypto markets turned volatile on Monday as Bitcoin spiked to $79,480 before reversing sharply after failing to break above $80,000, with the selloff coinciding with a fresh surge in oil prices tied to deteriorating US-Iran diplomatic progress. The move began around 23:00 UTC with the opening of US equity markets and CME Bitcoin futures -- a period that historically sees elevated volatility. By 05:30 UTC, with Bitcoin unable to clear the $80,000 level, price dropped approximately 2% in an hour, falling from near $79,500 to $77,800 before stabilizing around $78,154. Oil Surge Accelerates the Reversal The selloff was amplified by a rise in Brent crude to $107 per barrel -- its highest level since the US-Iran ceasefire began -- after President Trump canceled plans to send US officials to Pakistan for talks on Saturday. The development rekindled geopolitical risk premium in energy markets and weighed directly on crypto sentiment, reinforcing the tight correlation between oil price moves and Bitcoin's near-term direction that analysts have flagged throughout the Iran conflict. Ether fell 2.2% to around $2,320, underperforming Bitcoin's 1.1% decline. The altcoin market absorbed the sharpest losses, with the Smart Contract Platform Select Index (SCPX) falling 2.5%, the DeFi Select Index (DFX) losing 2.3%, and the CoinDesk 20 Index down 1.5% since midnight UTC. $300 Million in Liquidations, Mostly Shorts Nearly $300 million in crypto futures positions were liquidated over the past 24 hours, with the majority being bearish short plays caught by the brief rally toward $79,500 before the reversal. The liquidation dynamic explains the sharpness of the initial spike -- short covering accelerated the move higher before the $80,000 level absorbed the momentum and sellers reasserted control. Open interest in XRP futures rose nearly 2.5% in 24 hours, the largest increase among major tokens, touching a one-week high of 1.82 billion XRP. Negative funding rates and negative OI-adjusted cumulative volume delta in XRP paint a bearish near-term picture consistent with the broader market. HBAR, XLM, and HYPE were other notable OI gainers over the period. Analysts cautioned against reading Bitcoin's persistently negative funding rates as an outright bearish signal, noting the dynamic is primarily driven by institutions hedging bullish exposure in related markets rather than expressing directional short bets. $80,000 Options Wall Creates Two-Way Friction Bitcoin's $80,000 strike call option is the most popular contract on Deribit, carrying over $1.5 billion in notional open interest. Crucially, dealer gamma at that strike is positive -- meaning market makers are likely to sell into any breakout above $80,000 and buy the dip on a move lower, a dynamic that mechanically suppresses volatility near the level and makes a sustained clean break more difficult to achieve. Laser Digital noted that investor flows are currently favoring risk reversals over outright puts, suggesting traders prefer options strategies that profit from price swings and volatility surface dislocations rather than taking direct directional bets on a selloff. Bitcoin and Ethereum's 30-day implied volatility indexes continued to decline, pointing to underlying market calm despite Monday's session volatility -- a dynamic consistent with the recent drop in the VIX and record highs in the Nasdaq. Altcoins Hit Hard; a Few Buck the Trend Lido (LDO) led sector losses with a 17% decline, surrendering all of Sunday's gains in a single session. SUI recorded the most negative cumulative volume delta among major tokens, reflecting sustained aggressive selling -- compounded by news that Sui-based DeFi protocol Scallop was exploited for approximately 150,000 SUI tokens worth just over $140,000. A handful of tokens avoided the carnage. PENGU surged 9.1%, JUP gained 4%, and CHZ rose 3.1%. CoinMarketCap's Altcoin Season indicator held at 39 out of 100, unchanged from last week and well below last month's peak of 51 -- signaling that broad altcoin participation in the current Bitcoin-led recovery remains limited.