The crypto market was buoyed by a softer than expected CPI print, along with Bitcoin rising back above $110,000 as ether moving back to $4,000.
Positive investor sentiment appears to be strongly aligned with Bitcoin, with CoinMarketCap’s “altcoin” indicator at its lowest level in more than 90 days, as Bitcoin’s dominance continues to rise.
Derivatives Positioning
By Jacob Joseph
- Bitcoin’s 30-day implied volatility, as measured by Volmex’s BVIV Index, eased to 45% from 52% in two days, partially reversing the spike experienced on October 10. This decline indicates an easing of market anxiety alongside a similar reset on Wall Street.
- Options data from Deribit shows that BTC’s seven-day volatility premium (VRP) has flipped negative, a sign of renewed calm.
- Dealer Gamma profile points to Positive Gamma Buildup from $112K to $120K strike. This means traders trade against the market in this range, arresting price volatility.
- Broadly speaking, BTC continues to trade at a premium to call all tenors, reflecting continued falling fears and call overwriting, especially at the long end of the curve.
- ETH options are showing bullishness beyond December expiration.
- Open interest (OI) in perpetual futures tied to most major tokens has increased over the past 24 hours. Leading the pack are bomb futures, with an OI gain of over 14%. Strong capital inflows into non-serious tokens often precede market corrections.
- Funding rates for TRX, ZEC have turned slightly negative, indicating a bias for short positions. In the case of ZEC, traders with long exposure to the spot market can hedge both short futures bets.
Token talk
By Oliver Knight
- CoinmarketCap’s “Altcoin Season” index has fallen below 25/100 for the first time in the last 90 days, as it is in “Bitcoin season.”
- The fall reflects deteriorating sentiment across the Altcoin market, with assets such as FET, 2Z, Bonk and WIF all losing more than 50% of their value in the past three months.
- Bitcoin dominance crept from 57% to 59% since Sep. 13, a sign that investors are shunning speculative altcoin bets in favor of Bitcoin, which has held stubbornly between $100,000 and 126,000 since July.
- Altcoins, meanwhile, fell victim to a liquidation cascade earlier this month as a sell-off prompted excessive drawdowns, wiping out the book’s liquidity in the process.
- While some have recovered from the sell-off, many remain at critical support levels to create a bearish market structure.
- This is despite a wave of Digital Asset Treasury Company (DATS) investing in altcoins throughout 2025, with a lack of retail demand failing to maintain consistent momentum.
