Crypto markets experienced a much-needed bounce on Monday, with bitcoin rising to $115,200 while ether listed at $4,160.
The increase can be attributed to anticipation surrounding Wednesday’s Federal Reserve meeting, where an interest rate cut is expected.
Bitcoin dominance continues to rise to demonstrate relative weakness across the altcoin market, although there were some outliers on Monday in the form of and .
Derivatives positioning
By Jacob José
- The BVIV, which measures BTC’s 30-day implied volatility, has fallen to an annualized 44%, nearly reversing the October 10 peak in a sign that market stress is easing.
- The bias for BTC put options listed on Deribit has weakened across all time frames. However, longer duration risk reversals remain slightly neutral to bearish. The same can be said for ETH, although on the short end, the bias for ETH puts is still slightly higher than that of BTC.
- Last week, traders continued selling up (calls) on the CME to collect the premium and generate returns on their long BTC positions.
- Open interest in futures linked to most cryptocurrencies, excluding XRP, HYPE and HBAR, has increased in the last 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 talk
By Oliver Knight
- The cryptocurrency market’s bounce ahead of Wednesday’s Federal Reserve rate decision was reflected across the altcoin sector, with companies like and posting double-digit gains.
- There was also a notable increase in tokens issued in 2018 or earlier, as and both rose by 8% and 9.5% respectively, while ether it re-entered bullish territory with a rise to $4,150.
- The reversal in price action was not felt in two newly launched tokens; plasma and aster both collapsed further lower as declining demand failed to quell wave after wave of selling pressure.
- Plasma initially rose as high as $1.67 in the days following its launch, reaching $3.3 billion in daily volume in the process. However, it is now trading at $0.36 and daily volume drops to $297 million.
- Meanwhile, Aster is trading at $1.07 and has lost 43% of its value over the past month. It was initially positioned to be a rival to decentralized derivatives exchange HyperLiquid, but enthusiasm has since faded due to concerns surrounding the legitimacy of trading volume on the platform.
- Bitcoin dominance rose slightly to 59.1% on Monday, from a low of 57.1% six weeks ago, suggesting investors still prefer BTC’s more measured gains compared to more speculative altcoin bets.
