Welcome to your morning briefing on what happened in the crypto markets overnight and what's expected during the coming day.

Good morning!

Bitcoin (BTC) and other major cryptocurrencies fell in the last 24 hours with the CoinDesk 20 (CD20) index retreating 2.17%, caught in the pullback that has gripped global markets this week.

The broader retreat began with a sell-off in tech-heavy equity indices like the Nasdaq 100, which is down 3.4% this week. According to a report from Citi, bitcoin’s drop below its 55-day moving average is often an early warning sign that risk appetite in equity markets is starting to fade.

Historically, when bitcoin holds above that threshold, tech stocks tend to perform better, Citi said. The recent crypto drop is largely due to tighter liquidity conditions.

The U.S. Treasury’s recent cash rebuild and a drop in bank reserves, estimated around $500 billion since July, have made risk assets less attractive.

While Treasury balances are nearing a point where tightening could pause, according to the report, the market hasn’t yet seen meaningful signs of a turnaround.

Meanwhile, AI-related stocks slumped as investors question evaluations and aggressive spending on data centers. That skepticism has spilled into crypto, weighing on the bitcoin price.

Jasper de Maere, an OTC strategist at Wintermute, said bitcoin options positioning remains concentrated between $102,000 and $105,000, with limited upside unless volatility picks up.

Ether options flows are anchored in the $3,000–$3,400 range, with traders using options strategies that favor protection rather than bullish bets.

Stay alert!

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