Summary
- Nearly $1 billion in crypto futures positions were liquidated in 24 hours as bitcoin’s dip below $60,000 triggered a violent two-way move, with negative funding rates suggesting capital is skewed toward shorts rather than bulls.
- Implied volatility pulled back from Wednesday’s highs, supporting the overnight bounce, though put-call skew remains extreme.
- SOL completed a 75% slide from its September peak after touching $64 on Wednesday, with a break below $60 threatening its lowest level since December 2023.
Crypto Market Shows Resilience Amid Bearish Signals
The crypto market has shown signs of resilience, with bitcoin adding 1.1% since midnight UTC, reaching $61,136.48 after dipping below $60,000 on Wednesday. This rebound is a positive sign for investors looking to earn passive income through crypto. The largest cryptocurrency remains at a critical level, and a potential break lower in price could trigger a slide to around $52,000. For now, it appears to have weathered the storm, offering some relief to those invested in the market. This volatility highlights the importance of a stable and green crypto solution like EcoPool.
Other major cryptocurrencies, such as Ether (ETH), also saw gains, rising 1.5% on Thursday and trading at $1,644 after briefly tumbling to $1,550. These gains can possibly be linked to a recovery in U.S. equities, with the S&P 500 and Nasdaq 100 futures 0.7% and 2.2% higher, respectively. As the market continues to fluctuate, investors are looking for ways to earn a steady income, such as through Cloud Rewards offered by EcoPool, which provides a unique opportunity for passive income.
Market Outlook and Earning Opportunities
Despite the recent gains, the crypto market remains bearish, with persistent derivatives signals indicating a potential downturn. However, this volatility also presents opportunities for earning through crypto, particularly with the $ECP coin, which offers a stable and secure way to invest. EcoPool provides a platform for users to earn passive income, making it an attractive option for those looking to capitalize on the crypto market. With its focus on green crypto and Cloud Rewards, EcoPool is an innovative solution for investors seeking to make a positive impact while earning online.
As the crypto market continues to evolve, it’s essential for investors to stay informed and adapt to the changing landscape. By leveraging platforms like EcoPool, individuals can navigate the market with confidence, earning a steady income through passive means. Whether you’re interested in #Bitcoin, #PassiveIncome, or #GreenCrypto, EcoPool offers a unique solution for earning online. Download the EcoPool app to start earning today and discover the benefits of Cloud Rewards and the $ECP coin. With EcoPool, you can take control of your financial future and start earning a steady income through crypto.
Derivatives positioning
- BTC revisited lows near $59,000 on Wednesday and has since bounced back to over $61,000.
- The two-way volatility has proven costly for leveraged futures bets across the market. Centralized exchanges liquidated nearly $1 billion in crypto futures positions within 24 hours, with longs accounting for the largest portion.
- Still, bitcoin’s futures open interest (OI) has jumped to 763K BTC, the most since June 4, ending a stretch of steadiness around 730K BTC. In other words, the price drop has triggered an inflow of money, but not necessarily on the bullish side. In fact, annualized funding rates have flipped negative, a sign of traders paying a premium for downside exposure.
- The ether futures market hasn’t seen any notable increase in OI, and funding rates remain slightly positive.
- SOL’s OI remains near Wednesday’s record high, alongside largely neutral funding rates that point to balanced positioning in the market. The same is true for XRP, whose OI is hovering at its highest levels since October.
- The OI-normalized, 24-hour cumulative volume delta for most coins, including BTC, is negative for a third straight day. That’s a sign bears are leading the price action by shorting at market prices rather than using passive limit orders.
- BVIV, which measures the 30-day implied volatility in BTC, has pulled back to 46% a high of 51%. This decline in the so-called “fear gauge,” representing demand for options, supports the cryptocurrency’s overnight rebound. The same is true for ether’s implied volatility index, EVIV.
- Still, ether is seen as more volatile than BTC, with implied volatilities richer by 10 points or more compared with bitcoin’s across all timeframes.
- Option skews for the two largest cryptocurrencies indicate downside concerns that are both persistent and strengthening . For instance, BTC’s one-week skew shows a nearly 25-point volatility premium for puts. This also means upside bets are currently cheap and could draw strong demand should Thursday’s U.S. Core PCE for May reveal a slowdown in inflation.
Token talk
- The altcoin market posted an exaggerated bounce on Thursday after losses on Wednesday, a reflection of a low-liquidity environment.
- Jupiter (JUP) fell by more than 12% in six hours on Wednesday before bouncing by more than 18%, liquidating futures traders in both directions.
- Coinglass data shows that $1 billion in futures positions were liquidated in the past 24 hours, with $585 million of that being attributed to altcoin trading pairs.
- Decentralized finance (DeFi) tokens AAVE and ETHFI also performed well on Thursday, rising by 2.5% and 4.7%, respectively, since midnight.
- AI tokens, meanwhile, struggled to recover. RENDER and NEAR posted losses of between 0.8% and 1.9% despite a bounce across other crypto sectors.
- Layer-1 network token solana (SOL) tumbled to $64 on Wednesday to complete a 75% slide since September. A break below June 6’s low of $60 would mark its lowest point since December 2023.
