Key facts
- Bitcoin price dropped to $57,700 before recovering to $58,800.
- Over $395 million in crypto futures were liquidated in 24 hours.
- Traders are positioning for a potential decline to $50,000 by September.
- Gold futures exhibited a bearish "death cross" technical signal.
- Solana-based Jupiter (JUP) and Stellar Lumens (XLM) saw significant price increases.
Bitcoin experienced a sharp decline to $57,700, its lowest point since September 2024, before partially recovering to $58,800. This downturn resulted in $395 million worth of crypto futures bets being liquidated over 24 hours, with bullish positions bearing the brunt of the losses.
Derivatives markets show a bearish sentiment, with put options on Bitcoin trading at a premium to calls across all timeframes on Deribit. A notable block trade involved a September expiry $50,000 Bitcoin put, indicating some traders anticipate a further 15% price drop by the end of the third quarter.
Gold futures have also flashed a bearish signal, with the 50-day moving average crossing below the 200-day moving average, a pattern known as a "death cross." This technical indicator, observed in prominent gold ETFs as well, suggests potential further downside for the precious metal.
Despite the broader market weakness, certain altcoins have shown resilience. The Solana-based decentralized exchange aggregator Jupiter (JUP) saw its total value locked (TVL) jump to over 20 million SOL from 13.9 million in May, accompanied by an 11% price increase and a 55% surge in trading volume. Stellar Lumens (XLM) extended its weekly rally to 17%.
These isolated gains have kept CoinMarketCap's "Altcoin Season" index at 48/100, indicating a mixed performance across the altcoin market. AI tokens, however, have struggled, with Bittensor (TAO) down over 30% since mid-June.