Key facts
- Bitcoin is trading around $64,000, pausing after a recent rally.
- The pullback in Bitcoin and Nasdaq 100 futures is linked to rising U.S. Treasury yields and oil prices.
- Brent crude oil reached $94 a barrel following the expiration of a U.S.-Iran ceasefire.
- Federal Reserve minutes from the July FOMC meeting are due Wednesday.
- President Donald Trump is expected to meet with crypto industry executives at the White House.
- Derivatives data indicates a bullish sentiment in Bitcoin futures, with funding rates at a 20-month high.
Bitcoin is trading around $64,000, pausing its recent rally as it tracks a pullback in Nasdaq 100 futures. This broader market weakness is driven by rising U.S. Treasury bond yields and an increase in oil prices, which have added to inflation uncertainty ahead of the Federal Reserve's upcoming meeting minutes.
Brent crude oil rose back to $94 a barrel after a 60-day U.S.-Iran ceasefire expired Monday without a deal. The Federal Reserve is set to release minutes from its July 28-29 FOMC meeting on Wednesday. Also on Wednesday, U.S. President Donald Trump is expected to meet with crypto industry executives at the White House.
Bitcoin recently traded around $64,000, after rallying from $62,600 on Monday. The cryptocurrency has dropped 0.6% since midnight UTC, mirroring the 1.1% loss in Nasdaq 100 index futures. Ether has also declined by around 1% since midnight UTC, along with other coins like SUI, XLM, and TAO.
The rise in yields reflects market unease ahead of the Fed minutes, particularly after two consecutive softer inflation prints. Derivatives data suggests a bullish sentiment in Bitcoin futures, with the long-short taker volume ratio flipping to bullish and annualized perpetual funding rates surging to a 20-month high. However, open interest in Bitcoin futures remains steady, while other cryptocurrencies like SOL show increased activity and XLM exhibits a bearish tilt with negative funding rates.
Bullishness appears selective, concentrated in Bitcoin, which shows buyer leadership. Most other major cryptocurrencies, including ETH, SOL, LTC, LINK, and DOGE, display negative cumulative volume delta (CVD), indicating selling pressure. Bitcoin and ether's 30-day implied volatility indexes are at year's lows, prompting trading firms to suggest tactical positioning for optionality.
Among specific tokens, PUMP saw a modest rise, holding some of its previous surge. XMR, a privacy coin, continued its outperformance in August. SUI was the biggest laggard, reversing recent strength, while FET extended its underperformance. LINK retraced some of its gains following a recent optimistic forecast.