Bitcoin consolidated after Monday’s selloff, trading at $62,600 after falling from $64,400 to $61,800 in 24 hours.
Ether (ETH) trailed the largest cryptocurrency, trading in a relatively narrow range of $1,770 to $1,790. Trading volume on ETH pairs increased 2.2% to $8.95 billion over the past 24 hours, suggesting a healthy balance between buyers and sellers rather than opposition to apathy.
Lighter (LIT) rebounded from Monday’s downturn, rising 5.7% since midnight UTC as it looks to stage another rally following a 200% rise since May.
US stocks were mixed, with Nasdaq 100 Index futures gaining 0.31% while S&P 500 Index futures fell 0.12%, reflecting uncertainty after US President Donald Trump said Iran would be hit with “very heavy” strikes on Tuesday.
Gold extended its decline from January’s record high to languish around $4,020 an ounce, down about 28% since January 29.
Positioning of derivative products
- The positioning of Bitcoin derivatives remains broadly unchanged. Open Interest (OI) is maintained at $17.1 billion; the three-month annualized base remained at 3.8%; and annualized funding rates were between 0% and 8% across multiple sites – with Bybit’s previous negative outlier now in line.
- No significant leverage was added in either direction, and no signals of stress appeared in the financing structure.
- Options positioning remains skewed in terms of buying, but continues to moderate. The 24-hour call/put ratio sits at 58/42, lower than yesterday’s 64/36, and the one-week delta skew has further compressed to ~15%, down from 26% a week ago.
- The at-the-money term structure remains in contango (early end ~31-32%, long end ~43%) and Deribit’s implied volatility index, DVOL, at 37.43, is near its multi-year low. Low stress, slight buying bias, but the options premium is slowly fading.
- Data from Coinglass shows $283 million in liquidations over 24 hours, with a 74-26 split between long and short positions. BTC ($66 million) and ETH ($50 million) were the leaders in terms of notional liquidations.
- Binance’s liquidation heat map shows $61,300 as the base liquidation level to watch for in the event of a price decline.
Symbolic discussion
- Ethena (ENA) mirrored LIT’s rise on Tuesday, rising 5.7% to dominate the altcoin market. However, unlike LIT, ENA has been in a deep downward trend since September, when it lost more than 90% of its value.
- Encouraging signs were also seen in the AI sector on Tuesday, with NEAR up 3.3% and FET up 1.7%.
- JUP and WLFI continued to show weakness amid declining trading volume, falling 1.5% and 0.5%, respectively.
- CoinMarketCap’s “Altcoin Season” indicator paints a more positive picture with a reading of 54/100. It spent most of June below 50/100.
- One of the potentially bullish drivers of altcoin price action could be the heavy selling in the South Korean stock market. The benchmark KOSPI index has fallen 10% since Friday, leading to an inverse correlation with the country’s crypto exchanges.
- Wu Blockchain reported that Upbit trading volume increased by 1,426% following the KOSPI plight, indicating a potential unwinding of the machine chip trade that saw investors abandon crypto late last year.
