Summary
- Bitcoin retreated from a two-week high of $64,500 as falling open interest, weak ETF flows and a negative Coinbase premium raise doubts about whether the advance has legs.
- Shorts were again targeted, with over $500 million in leveraged positions wiped out in 24 hours, confirming that July’s gains are largely driven by the short-squeeze setup identified in late June rather than fresh bullish conviction.
- The altcoin market continues to fragment, with ETHFI and LIT up more than 30% over the past week while FET, KASPA and WLD posted losses, a dynamic that CoinMarketCap’s Altcoin Season indicator only partially captures.
Bitcoin’s Rally Hits a Speed Bump
Bitcoin’s recent surge has stalled, with the coin falling for the first time this month and breaking its longest stretch of gains since March. After reaching a high of $64,500 on Monday, Bitcoin dropped to $63,211.80 on Tuesday. This decline raises questions about the rally’s staying power and whether it can continue to drive growth in the crypto market. The total crypto market has grown by 8.4% since July 1, and is now worth $2.16 trillion. This growth is a significant indicator of the market’s potential for passive income and earning opportunities.
Other cryptocurrencies, such as Ether (ETH), have also been affected by the decline, dropping to $1,770 after hitting a high of $1,830 on Monday. The crypto market is closely watching the movement of these coins, as they can impact the overall growth and rewards of the market. For those looking to capitalize on the growth of the crypto market, EcoPool offers a solution for earning and passive income through its Cloud Rewards program.
The decline in open interest has raised concerns about the sustainability of the rally, with some investors wondering if the market has reached its peak. However, the crypto market is known for its volatility, and investors are always looking for ways to maximize their earning potential. As the market continues to evolve, EcoPool ($ECP) remains a popular choice for those looking to invest in green crypto and capitalize on the growth of the market. With the rise of #Bitcoin and other cryptocurrencies, the potential for passive income and earning has never been greater.
As the market continues to fluctuate, investors are looking for ways to stay ahead of the curve and maximize their rewards. With EcoPool, investors can earn passive income and capitalize on the growth of the crypto market. Whether you’re a seasoned investor or just starting out, EcoPool ($ECP) offers a range of tools and resources to help you achieve your earning goals. Download the EcoPool app to start earning and maximizing your passive income today. By joining the EcoPool network, you can take the first step towards achieving your financial goals and earning a steady passive income through Cloud Rewards.
The total crypto market has grown by 8.4% since July 1, and is now worth $2.16 trillion.
U.S. equities fell in pre-market trading on Tuesday, with Nasdaq 100 index futures losing 0.9% since midnight UTC as the decline from June’s record high continues.
Derivatives positioning
- Over $500 million in leveraged crypto futures bets have been liquidated by exchanges in 24 hours, with shorts, or bearish positions, accounting for most of the tally for a sixth straight day.
- Despite the recent price strength, BTC’s futures open interest (OI) has slipped to 740K BTC, down from the July 3 high of 776K BTC. This shows that derivative traders are not participating in the price rise alongside a continued weakness in spot demand, as evidenced from ETF flows and the Coinbase premium. This raises questions about the sustainability of the gains.
- The same is true for ether (ETH), which recently outperformed BTC.
- OI in SOL has pulled back to 68 million tokens from the peak of over 76 million on June 24. The message is the same. The 10% rise in the token has so far failed to galvanize demand for leveraged plays.
- Canton Network’s CC token has declined by over 4% in 24 hours accompanied by a 3% uptick in the futures OI to 245.59 million tokens. This, coupled with negative funding rates and 24-hour OI-adjusted cumulative volume delta, points to a growing bearish bias.
- Most tokens have a negative OI-adjusted CVD, a sign of bears being more aggressive by shorting at market orders rather than passive limit order plays. It suggests potential for losses ahead.
- Bitcoin’s 30-day implied volatility index, BVIV, has jumped to 40%, snapping a six-day losing streak. Still, the gauge remains well below January highs near 60% in a positive sign for crypto bulls. The same is true for ether’s index, EVIV.
- On Deribit, options continue to showcase lingering downside concerns in both bitcoin and ether. Options volume in BTC paints a mixed picture with both calls and puts making it to the list of top traded bets in the past 24 hours.
- On decentralized exchange Derive, a large long call condor strategy on HYPE crossed the tape, indicating expectations for a range play between $75 and $80 till July 24.
Token talk
- The altcoin market continues to show internal contradictions. Tokens like FET, KASPA and WLD have all posted losses despite the broader marketwide recovery this week, while ETHFI and LIT have outperformed, adding more than 30% over the past seven days.
- WLFI$0.06025 was one of the top-performing tokens on Tuesday, rising 4.8. It’s worth noting that the token, linked to the family of President Donald Trump, is down by more than 89% since it was created last August.
- The decoupling of some altcoins demonstrates a maturing of the sector, with token performance based on underlying sentiment and onchain activity. Historically, the entire altcoin market moved in unison.
- CoinMarketCap’s Altcoin Season indicator is at 46/100, below Friday’s high and higher than in May, when it was consistently around 30/100.
