Bitcoin has rebounded to over $121,000 from an overnight low below $120,000, alongside strong gains in privacy coins such as ZEC and DASH.
Traders on decentralized exchanges continued to be bullish, favoring out-of-the-money BTC and ETH calls. Most analysts maintained a constructive bias.
“The market is winding at high levels, calm, liquid and quietly bullish. Institutional flows remain the backbone of this phase, with ETFs acting as a liquidity bridge between traditional and digital finance. Despite near-term challenges, the wave of macro liquidity, corporate adoption and structural inflows all make the case for continuation,” said Timothy Misir, Head of Research at BRN.
Positioning of derivative products
By Omkar Godbole
- Data from Coinglass shows that many BTC perpetual short positions are at risk of liquidation above $121,600. Thus, a sustained move above the said level could trigger a short squeeze, leading to a rapid rally towards record highs.
- The market is undergoing a leverage reset, with volatility eliminating excess positioning on both sides, Glassnode said. Nonetheless, overall positioning in the global BTC futures market remains high, with open interest just below the record 755,000 BTC.
- BNB, XRP, ADA, and TRX saw a decline in futures open interest (OI) over the past 24 hours, indicating capital outflows. BTC’s OI increased by 1%, while ETH only increased by 0.4%.
- The XMR market appears a bit overheated, with annualized funding rates near 60%, a sign of frenzied demand for bullish bets. Funding rates for other major tokens, including BTC and ETH, paint an optimistic picture, but nothing out of the ordinary.
- On decentralized exchange Derive, open interest for options expiring October 31 is concentrated in calls at strike prices of $128,000 and $145,000, reflecting a bullish bias. ETH options activity is also bullish, with OI focused on the $5,000 and $6,000 calls.
- On Deribit, however, the call bias for BTC and ETH remains slightly negative across multiple time frames, reflecting a bias toward protective puts. Block flows on Paradigm featured ETH puts and straddles.
Symbolic discussion
By Olivier Knight
- The recent Chinese memecoin frenzy that saw tokens like GIGGLE, 四, and 哈基米 skyrocket on PancakeSwap V2, has abruptly died down.
- Within 24 hours, many of these assets lost more than 95% of their value, wiping out speculative gains built on media hype and social momentum.
- The crash coincided with a broader downturn in the memecoin market that Binance founder Changpeng “CZ” Zhao described as a “bloodbath,” fueled by FUD and false rumors about token listings.
- The plunge comes after Binance rolled out its “Meme Rush” platform, which is supposed to provide a structured path for tokens before being tradable on various decentralized and centralized exchanges.
- However, just like the disappearance of Solana memecoins in February after the launch of TRUMP and MELANIA, BNB channel memes appear to be following the same path to disappearance.
- Pancake Swap trading volume remained inflated to $18 billion over the past 24 hours, with a handful of newly launched tokens being bid on, although it should be noted that liquidity remains relatively low; the wrapped bnb (WBNB) having only $35 million in liquidity, compared to a fully diluted value of $1.6 billion.
