Key facts
- Bitcoin recovered from a low of $58,100, trading near $59,700.
- Ether continued its decline, falling 1% to around $1,550.
- Over $1 billion in leveraged crypto positions were liquidated in the past 24 hours.
- Bitcoin futures open interest increased to 778,000 BTC.
- Implied volatility for Bitcoin rose to 53%, the highest since early June.
Bitcoin experienced a rebound from its weakest point since September 2024, reaching near $59,700 after a dip to $58,100. However, ether continued its downward trend, falling 1% to around $1,550, and U.S. equity futures also indicated weakness, with the Nasdaq 100 and S&P 500 down 1% and 0.4% respectively.
Derivatives data suggest increasing market stress. Bitcoin futures open interest rose for a second consecutive day to 778,000 BTC, indicating traders are adding short positions. Over the past 24 hours, more than $1 billion in leveraged positions, predominantly longs, were liquidated. Bitcoin's annualized 30-day implied volatility index (BVIV) climbed to 53%, its highest level since June 7, while ether's index rose to 66%. The one-week bitcoin options skew is approaching 30%, reflecting a substantial premium for puts and underscoring downside fears.
In the altcoin market, Aave was a notable exception, adding 6.8% following reports that crypto exchange Kraken is considering acquiring a 15% stake in the DeFi company. Solana also saw a modest gain of 2%. Conversely, AI tokens like RENDER, NEAR, FET, and TAO experienced declines, and Ethena (ENA) continued its poor performance, dropping another 5% due to negative funding rates impacting its yield generation strategy.