The crypto market experienced a “selling news” reaction to the Federal Reserve’s interest rate cut and the US trade agreement with China against Bitcoin. Slipping back to the $110,000 support.
Traders may now be wondering whether the recent modest high of $116,000, marking a lower high than the $126,000 Bitcoin recorded at the beginning of the month, would signal a downtrend and reversal.
Bitcoin dominance declined by a few basis points on Thursday, suggesting that some altcoins are outperforming BTC despite market weakness being reflected in the crypto majors.
derivatives positioning
by Saksham Diwan
- Despite the decline in Bitcoin price following yesterday’s Fed news, the BTC futures market is showing strength: Open Interest (OI) has increased slightly to $27.2 billion, confirming minimal liquidations and quick buyer re-entry.
- Importantly, highly polarized funding rates have normalized, now trending neutral and nearly flat in most places. This indicates underlying market resilience and a less volatile, more measured sentiment than previous uncertainty.
- The BTC options market remains strongly bullish, although short-term conviction has diminished.
- The implied volatility (IV) term structure still exhibits near-term backwardation before transitioning into long-term contango. The one-week 25-delta skew has fallen to 8% from 10% yesterday, but traders are still paying significant premiums for short-term call options.
- This diminished confidence is reflected in the 24-hour put-call volume ratio, which remains bullish in favor of calls at 55:44.
- CoinGlass data shows $821 million in 24-hour liquidations, with a 79-21 split between longs and shorts.
- BTC ($368 million), ETH ($188 million) and Others ($52 million) were the leaders in terms of notional liquidations. The Binance liquidation heatmap points to $109,700 as the main liquidation level to monitor in case of a price decline.
token talk
by oliver knight
- Over $80 billion was wiped off the total crypto market cap over the past 24 hours as traders “sold the news” following the Fed’s interest rate cut and the trade deal between the US and China.
- Bitcoin and ether The two largest cryptocurrencies are both down 2.5% as they battle support levels. XRP and XLM were the worst performing tokens among the 20 largest tokens, falling 3.5% and 3.3% respectively.
- Plasma Constantly making headlines for all the wrong reasons, it is down 14% in 24 hours since September 28 with a total loss of 81%.
- One glimmer of optimism in the altcoin market was memecoin TRUMP, endorsed by the US President, which surged 6.8% after reports emerged that Fight Fight Fight, the company that manages the token, is planning to acquire American fundraising platform Republic.
- Trump is now up 45% this week, although at $8.40 it is still well below its record high of $45.47.
- Bitcoin dominance decreased slightly from 59.3% to 59.0%, suggesting that some altcoins are outperforming Bitcoin during this latest period of selling pressure.