The crypto market experienced a “sell the news” reaction to the Federal Reserve’s interest rate cut and a US trade deal with China, along with Bitcoin Sliding back to the $110,000 support level.
Traders will wonder if the recent high just shy of $116,000 will mark a lower high from the record $126,000 bitcoin hit at the start of the month, signaling the etchings of a downtrend and a reversal.
Bitcoin Dominance broke out several basis points on Thursday to suggest that some altcoins are outpacing BTC’s growth despite the market weakness seen in the crypto majors.
Derivatives Positioning
By Sasham the One.
- Despite the post-fed news drop in Bitcoin, the BTC Futures market is showing strength: Open Interest (OI) slightly increased to $27.2 billion, proving little liquidity and quick buyer entry.
- Crucially, the highly polarized funding rates have normalized, now trending neutral and near-flat in most areas. These signals are underpinned by market resilience and a less volatile, more measured sentiment compared to previous uncertainty.
- The BTC options market maintains a strong bullish bias, although short-term sentiment has moderated.
- The implied volatility (IV) term structure still shows near-term backwardation before moving into long-term contango. The one-week 25-delta skew is down to 8% from 10% yesterday, but traders are still paying a significant premium for short-term call options.
- This reduced confidence is reflected in the 24-hour call volume ratio, which remains bullish at 55:44 in favor of calls.
- Coinglass data shows $821 million in 24-hour liquidation, with a 79-21 split between longs and shorts.
- BTC ($368 million), ETH ($188 million) and others ($52 million) are the leaders in terms of notional liquidations. The Binance Liquidation Heatmap indicates $109,700 as a key liquidation level to monitor, in case of a price collapse.
Token talk
By Oliver Knight
- More than $80 billion has been wiped off the total crypto market cap in the past 24 hours, counting Entrepreneurs “sell news” After the Fed’s interest rate cut and a trade deal between the US and China.
- Bitcoin and ether the two largest cryptocurrencies, are both down 2.5% as they hit support levels. XRP and XLM were the worst performing tokens among the 20 largest, losing 3.5% and 3.3% respectively.
- Plasma It continued to make headlines for the wrong reasons, falling 14% in 24 hours to compound an overall loss of 81% since September 28.
- A glimmer of optimism in the entire Altcoin market is Trump, the memecoin backed by the US president, which rose 6.8% after reports emerged that the fight, the company that manages the token, is Planning to acquire US Fundraising Platform Republic.
- Trump is now up 45% this week though at $8.40 remains well below the record high of $45.47.
- Bitcoin Dominance It seems slightly from 59.3% to 59.0%.
