The crypto market saw a period of gains over the weekend after two straight weeks of losses. Bitcoin rose by 4% in the last 24 hours and, after reaching $106,500, is now trading around $106,000 as it attempts to move away from the psychological support level of $100,000. Ether added 6.5%.
The altcoin market outperformed bitcoin, with bitcoin dominance falling to 59.1% from the November 5 high of 60.1%. This is a signal that the payment of a $2,000 tariff dividend in the United States will serve to boost altcoins, as it did during the Covid era.
Decentralized finance (DeFi) protocols have also seen a boom, with total value locked (TVL) reaching $142.8 billion, according to data from DeFiLlama. Starknet Bridge TVL increased 20% to $913 million and Suilend also increased 20%.
The rise in TVL could be attributed to asset appreciation, but as the SUI token only rose 7%, this is more indicative of investors depositing to generate yield, reflecting confidence in the market.
Positioning of derivative products
By Omkar Godbole
- Despite BTC’s rapid rebound to $106,000, options on Deribit continue to show a bias toward puts across all tenors. In the case of ETH, calls are trading at a premium to puts as of January expiration, indicating a bullish outlook.
- Block flows included a long $99,000 put position expiring on November 14 and a bull call spread on ether, involving calls at $3,900 and $4,400, both expiring on November 21.
- Overall, options flow was mixed, with call fly buyers suggesting optimism and call spread sellers expecting capped rallies.
- In the futures market, XRP, LTC, and LINK saw double-digit growth in open interest (OI) over the past 24 hours, validating gains in their spot prices. OI has also increased in other major tokens including BTC and ETH, indicating further capital inflows.
- The OI-adjusted cumulative volume delta for most tokens, excluding ZEC and BCH, is negative over the past 24 hours, a sign that even though spot prices have increased, futures have seen net selling. This divergence raises the question of the sustainability of the achievements.
- DOT stands out with negative funding rates, indicating a bias towards bearish short positions.
Symbolic discussion
By Olivier Knight
- The altcoin market saw some much-needed momentum on Monday, boosted by President Donald Trump’s announcement of a $2,000 tariff-related dividend for U.S. citizens.
- One of the main winners was linked to Trump which rose 26% during Asian hours on Monday.
- XRP, XLM, and HBAR have all seen gains of over 10% in the past 24 hours. These three tokens are favored by retail investors, suggesting that this move is supported by those who could receive the dividend, as opposed to institutional flows through ETFs.
- CoinMarketCap’s “altcoin season” indicator rose to 34/100 from a 90-day low of 23/100, demonstrating the strength of the altcoin market relative to bitcoin. which reached $106,500 on Monday.
- One sector that has cooled is privacy coins: Monero and rush both posted marginal losses after significant rebounds over the past two weeks.
- The decentralized finance (DeFi) market also showed signs of reversal, with the total value locked (TVL) across all protocols falling from $136.2 billion at the start of the weekend to $142.8 billion, according to DefiLlama.
