The crypto market continued to consolidate on Wednesday with crypto majors bitcoin and ether lost less than 1% while privacy tokens like decred up to 22%, Dash and XMR extended their market outperformance.
The overall cap of the crypto market fell by 0.6% in the past 24 hours to $3.51 trillion, although it remains higher than on November 7 when it ticked down to less than $3.32 trillion.
A recent one increase in volatility suggesting that a void in market liquidity remains after last month’s seizure of seizure. This means that a news catalyst can cause significant swings in price action while the market remains coiled.
Eyeballs are focused on the US, with the government shutdown seemingly entering its final stages. Government continuity could accelerate changes in crypto policy and potentially dictate price action.
Derivatives Positioning
By Omkar Godbole
- Volmex’s BVIV Index, which measures 30-day implied volatility in Bitcoin, remains elevated in a recent range around 50%. Traders eye increased near-term price volatility due to thin liquidity, macro concerns and option buyers.
- Futures activity has been mixed with tokens such as Hype, BCH and Sol seeing 1%-2% growth in open interest (OI) over the past 24 hours. Meanwhile, OI on ETH, XRP and BNB declined while BTC held almost flat.
- Annual funding rates for BTC and ETH will remain well below the 2025 average, indicating underlying demand for risk appetite and investors.
- On the CME, the annualized three-month basis in Sol futures fell to 7%, the lowest since July, matching the premiums in BTC and ETH futures.
- On Deribit, options tied to BTC and ETH continue to show a near-term bearish outlook.
- Block flows feature a trader selling a BTC putting spread on the December expiration, while call options tied to ether, from $4,000 to $7,000 are raised.
Token talk
By Oliver Knight
- The Altcoin market was showing signs of insensitivity on Wednesday after a volatile period that saw prices whipsaw from key support levels on Friday to relative safety on Monday.
- The Changing the privacy coin continue to be the main narrative. DECRED Posted a 22% gain while Dash and Monero Also stable in the last 24 hours.
- There was also a notable 20% gain for Canton (CC), the native token of the canton network blockchain, designed for institutions and backed by major banks.
- However, some of the biggest crypto tokens have been in the red in the past 24 hours. Ether , and bnb are all down 1%-2%. Solana Showed more weakness with a 3.6% move to the downside.
- CoinmarketCap’s average relative strength index (RSI) is at 51.26/100, showing that the market is neither oversold nor overbought and that a catalyst is needed to drive price action.
- The Fear and Greed Indexwhich studies market sentiment, is slipping back into fearful territory at 26/100. It has been below 30 only a few times in the past year, leading to a series of significant bounces in March.
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