Key facts
- Bitcoin fell 1.31% to $63,870 and ether dropped 1.40% to $1,890.
- The CoinDesk 20 Index has gained 8.7% in July, marking its largest monthly advance in a year.
- Uniswap (UNI) rose 9.30% due to momentum from its Robinhood layer-2 integration.
- Cardano (ADA) gained 4.09% as it continues a recovery from June lows.
- XRP futures open interest increased to 2.27 billion tokens, indicating a bearish sentiment.
- Bitcoin's 30-day implied volatility (BVIV) decreased to 37%, the lowest since May.
Bitcoin and ether experienced declines on the final day of July, diverging from a rally in equities and the broader cryptocurrency market, which is poised for its best monthly performance in a year. Bitcoin fell 1.31% to $63,870, while ether dropped 1.40% to $1,890, struggling to reclaim the $2,000 level.
Despite the dip in major cryptocurrencies, the CoinDesk 20 Index has gained 8.7% in July, its largest monthly advance since July of the previous year. This positive momentum is attributed to strong performances from altcoins such as Uniswap (UNI), which rose 9.30% following its integration with Robinhood's layer-2 solution, and Cardano (ADA), which gained 4.09% as part of a broader recovery.
However, geopolitical tensions in the Middle East and hawkish remarks from Federal Reserve officials have tempered recovery hopes for the crypto market this week. The CoinDesk 20 Index has seen a 2.34% decrease since Monday, though it remains positive for the month.
Analysis of derivatives markets indicates a bearish sentiment. The taker long-short futures volume ratio leans bearish, and XRP's futures open interest has risen to 2.27 billion tokens, the highest since late June, confirming a downtrend as traders anticipate further price drops. Bitcoin's open interest remains static, suggesting a reluctance to deploy capital in leveraged products. Bitcoin's 30-day implied volatility has fallen to 37%, the lowest since May, a level that has historically preceded price bounces.
Early Friday saw the expiration of bitcoin and ether options worth $10 billion on Deribit. A $60,000 put option represents a significant bearish bet on the market. Other tokens like Ethena (ENA) extended their recovery, while Lighter (LIT) and Zcash (ZEC) experienced corrections.