The cryptocurrency market rebounded on Monday following the weekend’s $500 billion bloodbath that resulted in a $10 billion drop in open interest.
bitcoin rose 1.4% while ether surpassed with a gain of 2.5%. Meanwhile, it stole the show with a 120% rally as traders anticipate “perpetual wars” between the decentralized trading venue and HyperLiquid.
Plasma and aster neither managed to benefit from Monday’s rally, losing 4.2% and 2.5% respectively.
Derivatives positioning
- The BTC futures market has stabilized after a volatile period. Open interest, which had fallen from $33 billion to $23 billion over the weekend, has now stabilized at around $26 billion. Similarly, the 3-month annualized base has recovered to the 6-7% range, after falling to 4-5% over the weekend, indicating that bullish sentiment has largely returned. However, funding rates remain a key area of divergence; While Bybit and Hyperliquid have stabilized around 10%, Binance’s rate is negative.
- The BTC options market is showing a renewed bullish trend. The 24-hour buy/sell volume has changed to more favor calls, now above 56%. Additionally, the 1-week 25 Delta Skew has risen to 2.5% after a period of stagnation.
- These metrics indicate a market with increasing demand for bullish exposure and upside protection, reflecting a move away from recent “cautious neutrality.”
- Coinglass data shows $620 million in 24-hour liquidations, with a 34-66 split between longs and shorts. ETH ($218 million), BTC ($124 million), and SOL ($43 million) were the leaders in terms of notional settlements. The Binance settlement heatmap indicates $116,620 as the central settlement level to monitor, in case of a price surge.
symbolic talk
By Oliver Knight
- The cryptocurrency market started Monday with a rally after strong leverage over the weekend. According to data from CoinMarketCap, the total crypto market capitalization increased by approximately 5.7% in the last 24 hours, and volume increased by approximately 26.8%, suggesting that those liquidated over the weekend are buying back their positions.
- A total of $19 billion in derivatives positions were eliminated over the weekend with the vast majority attributed to those holding long positions; However, in the last 24 hours, $626 billion was liquidated, of which $420 billion was shorted, demonstrating a change in sentiment, according to CoinGlass.
- The recovery has been timid so far; Bitcoin dominance remains elevated at around 58.45%, modestly below recent highs, implying that altcoins may still lag behind as capital accumulates back into safer large-cap names.
- The big winner of Monday’s recovery was which surged more than 120% ahead of a cryptocurrency trading competition that will potentially see it start “perpetual wars” with HyperLiquid.
