Crypto markets saw a well-deserved rebound on Monday, with bitcoin rising to $115,200 while ether traded at $4,160.
The rise can be attributed to anticipations surrounding Wednesday’s Federal Reserve meeting, during which an interest rate cut is expected.
Bitcoin’s dominance continues to rise, demonstrating relative weakness in the altcoin market, although there were a few outliers on Monday in the form of And .
Positioning of derivative products
By Jacob Joseph
- BVIV, which measures BTC’s 30-day implied volatility, has fallen to an annualized rate of 44%, nearly reversing the October 10 peak, a sign of waning market tensions.
- The bias towards BTC puts listed on Deribit has weakened across all durations. However, longer duration risk reversals remain slightly neutral to bearish. The same can be said for ETH, although in the short term the bias for puts on ETH is still slightly higher than that for BTC.
- Last week, traders continued to sell topsides (calls) on the CME to collect premiums and generate yield on their long BTC.
- Open interest in futures contracts linked to most cryptocurrencies, excluding XRP, HYPE and HBAR, has increased over the past 24 hours, indicating capital inflows amid the price rally.
- Although Bitcoin prices have surpassed their October 21 high, total open interest in USDT and USD-denominated perpetual futures on major exchanges remains below the levels seen on October 21. This divergence suggests that leveraged traders’ participation in the recent BTC rally has been limited.
Symbolic discussion
By Olivier Knight
- The crypto market rebounded ahead of Wednesday’s Federal Reserve rate decision, which was reflected across the altcoin sector, including And posting double-digit gains.
- There has also been a notable increase in the number of tokens issued in 2018 or earlier, as And both rose 8% and 9.5% respectively, while ether returned to bullish territory with a rise to $4,150.
- The reversal in price action was not felt in two newly released tokens; plasma and aster both collapsed further to the downside as falling demand was unable to quell successive waves of selling pressure.
- Plasma initially reached $1.67 in the days following its launch, generating daily volume of $3.3 billion. However, it is now trading at $0.36, with daily volume dropping to $297 million.
- Aster, meanwhile, is trading at $1.07 after losing 43% of its value over the past month. It was initially positioned to be a rival to decentralized derivatives exchange HyperLiquid, but the hype has since died down after concerns over the legitimacy of trading volume on the platform.
- Bitcoin’s dominance increased slightly to 59.1% on Monday from a low of 57.1% six weeks ago, suggesting investors still prefer BTC’s more measured gains over more speculative bets on the altcoin.
