The cryptocurrency market continued to consolidate on Wednesday with major cryptocurrencies bitcoin and ether losing less than 1% while privacy tokens like decred With a 22% increase, DASH and XMR extended their market outperformance.
The overall crypto market capitalization is down 0.6% in the last 24 hours to $3.51 trillion, although it is still higher than on November 7, when it fell to $3.32 trillion.
A recent spike in volatility suggests a gap in market liquidity remains after last month’s leverage-induced burst. That means a news catalyst could cause significant swings in price action while the market remains spiraling.
Eyes will focus on the United States, where the government shutdown is apparently reaching its final stages. The government resumption could accelerate crypto policy changes and potentially dictate price action.
Derivatives positioning
By Omkar Godbole
- Volmex’s BVIV index, which measures 30-day implied volatility in bitcoin, remains elevated in the recent range of around 50%. Traders expect further price turbulence in the near term due to tight liquidity, macroeconomic concerns and put option buyers.
- Futures activity has been mixed and tokens like HYPE, BCH, and SOL have seen 1% to 2% growth in open interest (OI) in the last 24 hours. Meanwhile, OI in ETH, XRP, and BNB has declined, while BTC has remained largely stable.
- Annualized funding rates for BTC and ETH remain well below the 2025 average, indicating moderate investor demand for leverage and risk appetite.
- On the CME, the three-month annualized basis in SOL futures has fallen to 7%, the lowest level since July, matching the premiums in BTC and ETH futures.
- On Deribit, BTC and ETH linked options continue to show a short-term bearish outlook.
- The block flows included a trader selling a BTC put spread at December expiry, while ether-linked call options, ranging between $4,000 and $7,000, were removed.
symbolic talk
By Oliver Knight
- The altcoin market is showing signs of indecision on Wednesday after a volatile period that saw prices move from crucial support levels on Friday to relative safety on Monday.
- The resurgence of privacy coins remains the main narrative. decreed recorded a 22% profit while running and monero also rose solidly in the last 24 hours.
- There was also a notable 20% gain for Canton (CC), the native token of the Canton Network blockchain, which is designed for institutions and backed by major banks.
- However, several of the largest crypto tokens have been in the red over the past 24 hours. Ether , and accommodation all are down between 1% and 2%. solarium showed further weakness with a downward movement of 3.6%.
- CoinMarketCap’s average Relative Strength Index (RSI) is at 51.26/100, showing that the market is neither oversold nor overbought and that a catalyst is needed to drive price action.
- The Fear and Greed Index, which analyzes market sentiment, is returning to fearful territory at 26/100. It has been below 30 only a handful of times over the past year, prompting a series of significant rebounds in March.
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