Summary
- Bitcoin rebounded from its weakest level since September, while ether fell and U.S. equity futures also softened.
- Derivatives data show rising stress, with bitcoin futures open interest jumping as traders add shorts, implied volatility and put skew climbing, and over $1 billion in leveraged positions—mostly longs—liquidated in 24 hours.
- Aave and solana are among the few standouts in a broadly weak altcoin market, while ethena slides as negative funding rates undercut ENA’s model.
Bitcoin Sees Slight Rebound Amidst Market Uncertainty
The crypto market is holding on to a critical support level, with bitcoin barely moving since midnight UTC after rebounding from its lowest level since September 2024 on Thursday. The largest cryptocurrency was recently trading near $59,700, having fallen as low as $58,100. This volatility has many investors looking for more stable ways to earn, such as through Passive Income with EcoPool. The Cloud Rewards system of EcoPool provides a unique opportunity for investors to earn $ECP, a Green Crypto that is gaining popularity.
Other cryptocurrencies, such as Ether, have not been as fortunate, with Ether dropping a further 1% and extending its string of declines to three straight days. In contrast, some tokens like aave have seen significant gains, adding as much as 6.8% since midnight. This highlights the importance of diversifying one’s portfolio and exploring alternative earning opportunities, such as those offered by EcoPool and its Passive Income streams.
Market Trends and Earning Opportunities
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One token that bucked the bearish market sentiment was aave AAVE$85.45, which added as much as 6.8% since midnight, building on a 17% gain over the past week after CoinDesk reported that crypto exchange Kraken was looking to acquire a 15% stake in the DeFi company.
Derivatives positioning
- Market volatility continues to weigh on leveraged futures positions. Over the past 24 hours, another $1 billion in positions were liquidated, with long positions once again accounting for the majority. Notably, ETH saw more liquidations than BTC in the past 12 hours.
- Bitcoin futures open interest (OI) rose for a second consecutive day to 778,000 BTC, a sharp increase from recent lows near 730,000 BTC. The open interest surged during Thursday’s late selloff, suggesting traders added shorts into the dip in anticipation of further downside.
- The picture is different in ether futures, where open interest has remained stable near the 14 million ETH level since at least June 15. This is somewhat constructive, as it indicates traders are not aggressively shorting the price decline. A similar pattern holds for XRP.
- Solana’s open interest has pulled back from record highs but remains elevated compared with recent months, pointing to the potential for continued volatility.
- The OI-adjusted 24-hour cumulative volume delta continues to show bearish dominance across most of the top 25 cryptocurrencies, with the notable exceptions of BNB, SOL and TON. The negative reading suggests bears are more aggressive than bulls, favoring market orders over passive limit orders. This trend has persisted since Tuesday.
- Annualized 30-day implied volatility indexes are signaling rising levels of concern. Bitcoin’s BVIV index jumped to 53% early today, its highest level since June 7 and a sharp rise from the June 16 low of 39%. ETH’s index climbed to 66%.
- Wall Street’s equivalent, the VIX, has also risen to 20% from 15% recently but remains within the range seen since early April, indicating that equities are not yet in panic mode. A similar message is coming from the U.S. Treasury market’s implied volatility index, MOVE.
- On Deribit, the one-week bitcoin options skew is approaching 30%, reflecting a substantial premium for puts, or defensive positions, over calls and underscoring strong downside fears. The one- and three-month skews are conveying a similar message.
- Block flows included a large trade in the $53,000 put expiring July 10, along with demand for ether risk reversals.
Token talk
- Aave outperformed the broader altcoin market, and an honorable mention goes to solana (SOL), which has added 2% since midnight and now trades around $68.95 after tumbling to $64.05 on Thursday.
- AI tokens continue to unwind; RENDER, NEAR, FET and TAO lost between 1% and 1.5% on Friday, extending their declines.
- Hyperliquid (HYPE) also fell, dropping 2.6%. It has now lost 18.5% since touching a record high 12 days ago.
- Ethena (ENA) remains one of the worst-performing altcoins, losing another 5% on Friday. It’s now dropped 34% after touching the month’s high on June 3.
- ENA’s plight can be attributed to the ongoing bear market, as a portion of the platform’s yield-generation strategy is tied to positive funding rates, which have now flipped negative.
