Key facts
- Bitcoin is trading at $62,600 after a recent selloff.
- Over $283 million in crypto liquidations occurred in 24 hours, primarily affecting long positions.
- South Korea's KOSPI index has fallen 10% since Friday.
- Trading volume on South Korean crypto exchange Upbit surged 1,426% as investors shifted from stocks to crypto.
- Options markets show a moderating bullishness with a softening put/call ratio and compressed delta skew.
Bitcoin has stabilized around $62,600 following a significant selloff that saw its price drop from $64,400 to $61,800 within 24 hours. The cryptocurrency market experienced $283 million in liquidations over the past day, with a disproportionate 74% affecting long positions. Key support levels are being closely watched, with Binance's heatmap indicating $61,300 as a critical point.
Market sentiment in options trading has softened, as evidenced by a decrease in the put/call ratio from 64/36 to 58/42 and a compression of the one-week delta skew to approximately 15%. The Deribit Implied Volatility Index (DVOL) is near multi-year lows, suggesting a low-stress environment despite a mild call bias.
In South Korea, the benchmark KOSPI index has plummeted 10% since Friday, prompting a significant rotation of capital back into cryptocurrencies. Trading volume on Upbit, a major South Korean exchange, surged by 1,426%, indicating a reversal of the trend where investors had exited digital assets to invest in machine chip stocks. This shift could potentially reverse the 'machine chip trade' that began at the end of last year.
Ether followed Bitcoin's movements, trading within a narrow $1,770-$1,790 range, with a modest 2.2% increase in trading volume. Some altcoins showed strength, with Lighter (LIT) rebounding 5.7% and Ethena (ENA) also rising 5.7%, though ENA remains in a significant downtrend. Tokens associated with the AI sector, such as NEAR and FET, also saw gains. The broader 'Altcoin Season' indicator improved to 54/100, suggesting a more favorable environment for altcoins.
U.S. equity futures showed mixed signals, with the Nasdaq 100 futures rising slightly while the S&P 500 futures declined. Gold prices continued to fall, trading around $4,020 per ounce, a substantial decrease from its January record high. U.S. President Donald Trump's comments regarding potential strikes on Iran added to market uncertainty.