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Bitcoin hovers above key support as equities, crypto retreat
Bitcoin and ether fell as escalating Middle East tensions lifted oil and the dollar, though BTC continued to hold above a key bull market level.
May 12, 2026, 10:40 a.m. 3 min read
What to know:
- Bitcoin fell around 1% to $80,800 while ether dropped 2% as rising geopolitical tensions pushed oil prices and the U.S. dollar higher.
- Most altcoins underperformed, though CRO, CRV and TON gained between 5% and 10%, with CRO boosted by a proposed tokenomics overhaul.
- CoinDesk’s DeFi and Computing sector indexes led crypto losses on Tuesday. JUP, MON and SEI fell more than 5% amid weak liquidity conditions.
Bitcoin, however, remains above Bitmine (BMNR) Chairman Tom Lee’s line in the sand at $76,000, which he said would confirm the end of a bull market if bitcoin can hold above that level at the end of the month.
The altcoin market is mixed with the majority of tokens underperforming the two largest cryptocurrencies, while a small corner of the market, including , curve (CRV) and toncoin (TON), bucked the bearish price action with upside moves between 5% and 10% in the past 24 hours.
Derivatives positioning
- Market-wide notional open interest (OI) in crypto futures rose to $125 billion even as volumes fell 6% to $174 million. The moves suggest reduced short-term speculation and gradual trader positioning.
- ZEC’s OI crashed over 10% to 1.90 million tokens from the 4.5-month high of 2.48 million tokens last week. At the same time, the token’s price dropped to $550 from $642. The combination suggests unwinding of bullish bets rather than fresh capital flows deployed for shorts or bearish plays.
- SUI, CORE, and HBAR were among the other major OI decliners. Open interest in Canton’s CC token, meanwhile, jumped more than 10%, with positive funding rates and a positive 24-hour OI-adjusted cumulative volume delta signaling stronger buyer dominance.
- ETH and XMR are other notable OI gainers, though their CVDs are negative, a sign that sellers are leading the price action with market orders rather than passive limit orders.
- The relentless decline in bitcoin’s 30-day implied volatility index, BVIV, has stalled this month, stabilizing near 40%. But there are no signs of a renewed upswing, which points to continued market calm, an environment favorable for further bullish price action.
- Wall Street’s volatility gauge, the VIX, which measures the 30-day implied volatility of the S&P 500 index, has jumped more than 10% this week to nearly 19 points. Though still below the recent highs above 30, the minor upswing warrants attention.
- On Deribit, the 24-hour volume ranking featured BTC calls at strikes of $80,000, $82,000, and $84,000. The calls are bets that the price of bitcoin will rally. It also included puts, or bets on a drop, at strikes of $65,000 and $74,000.
