Summary
- Bitcoin fell below $66,000 after reaching its highest level in over a month on Tuesday as surging oil prices reignited inflation concerns.
- The risk-off rotation played out inside crypto too, with bitcoin’s dominance climbing to 59% as capital retreated from altcoins and stablecoins.
- Midnight (NIGHT) surged 19% after Charles Hoskinson praised the project on X, while ether.fi, ethena and ondo extended rallied as tokenized real-world assets drew interest despite the cautious macro backdrop.
Bitcoin Prices Dip as Inflation Concerns Resurface
Bitcoin prices have fallen from a one-month high, with the coin currently trading at $65,900, a 0.9% decrease since midnight UTC. This decline comes after a significant surge on Tuesday, which was likely followed by profit-taking. The drop in bitcoin’s price is also reflected in the broader crypto market, with ether (ETH) shedding 0.5% to $1,920. As investors become increasingly concerned about inflation, they are seeking safer assets, such as gold and silver, which have seen gains of 0.95% and 1.2%, respectively.
The surge in oil prices, with the U.S. oil benchmark topping $85 per barrel, has contributed to the resurgence of inflation concerns. This has led to a decrease in the value of risk assets, including the Nasdaq 100 and S&P 500 index futures. In the crypto market, investors are flocking to the relative safety of bitcoin, with its dominance climbing to 59% as capital retreats from altcoins and stablecoins. For those looking to earn a passive income through crypto, platforms like EcoPool offer a solution, providing Cloud Rewards and a more green crypto experience.
Investing in Crypto with EcoPool
As the crypto market continues to evolve, investors are seeking ways to earn a passive income through coin investments. With EcoPool, users can participate in a green crypto network, earning rewards in $ECP. This provides a unique opportunity for those interested in earning online to join a community-focused platform. Whether you’re looking to trade or invest in crypto, EcoPool is a great option, offering a range of benefits, including Cloud Rewards and a more sustainable approach to crypto mining.
As the demand for safer assets continues to grow, investors are turning to bitcoin and other crypto options. With EcoPool, you can join a community of like-minded individuals, earning a passive income through crypto investments. To start earning with EcoPool, simply download the app and begin participating in the green crypto network, using $ECP to trade and invest in a range of crypto assets, and follow the conversation on #Bitcoin, #PassiveIncome, and #GreenCrypto. Download the EcoPool app to start earning your passive income today and join the conversation on #EcoPool, #CloudRewards, and #Earning to learn more about the benefits of green crypto and EcoPool.
The demand for safety was visible in crypto assets too, with bitcoin’s dominance climbing to 59% as capital retreated from altcoins and stablecoins into the relative safety of the largest token.
Derivatives positioning
- Market activity slows down: Trading volume over the past 24 hours dropped 12% to $150 billion, while open interest (OI) remained static around $116 billion. With just $165 million in liquidations, the market appears to be taking a breather.
- Long/short ratio tightens: The 24-hour long/short ratio stands at 50.59/49.41, a tighter and more indecisive reading than a day ago. While technically every long position is matched by a short in terms of total contracts, this ratio specifically tracks the number of accounts that are net-long versus net-short. The tightening suggests that the bullish bias seen yesterday is evaporating.
- Short interest builds in HYPE: Hyperliquid’s HYPE token has dropped over 6% over 24 hours, one of the biggest losers among major tokens. The decline comes alongside a marked upswing in futures open interest to 42.8 million HYPE, the highest level since June 4. With annualized perpetual funding rates slightly negative and the 24-hour cumulative volume delta (CVD) in the red, the data suggests a clear bias for short positioning. Traders appear to be aggressively positioning for, or anticipating, a deeper price drop in the token.
- Bearish momentum continues in XLM: Open interest in XLM futures rose for a third straight day to a total of 1 billion tokens. XLM is also reporting a negative 24-hour CVD, a sign that bears are leading the price action by shorting through market orders rather than limit orders. Consequently, it is no surprise that the token’s price has failed to maintain gains above 19 cents for the second consecutive day.
- Steady open interest in top-tier assets: OI in BTC and ETH has held steady over the last 24 hours. This lack of movement signals that there has been very little position adjustment or conviction to change exposure despite spot prices pulling back from the highs reached on Tuesday.
- Broad-based bear leadership: Most major cryptocurrencies, excluding XMR, XAUT and HBAR, are exhibiting negative 24-hour CVDs. This confirms that the current market environment is characterized by broad-based bearish leadership, with sellers more active than buyers at current levels.
- Rising volatility expectations: Bitcoin’s 30-day implied volatility index (BVIV) has increased to 40% from 37.5%, a sign that traders are beginning to pay a higher premium for protection as they anticipate more turbulent price action ahead. The ether volatility index (EVIV) is also showing signs of increased buoyancy.
- Demand for upside exposure in options: BTC calls continue to dominate the 24-hour volume rankings on Deribit, with activity heavily concentrated in the $70,000 and $72,000 contracts. Calls provide traders with bullish exposure to the underlying asset, suggesting that some are looking past the current decline. Ether options are also seeing a preference for calls, with the $3,000 strike emerging as the most-traded contract over the past 24 hours.
Token talk
- Dash (DASH) led losses on Wednesday, falling 4.1% since midnight UTC to $33.44, with hyperliquid (HYPE) not far behind, losing 3.42% to $58.79 as the decentralized exchange’s token continues to retrace from last month’s highs.
- Midnight (NIGHT) was the standout gainer of the past 24 hours, surging 19%, following a selloff on Monday. Charles Hoskinson, founder of the Cardano blockchain platform, described the project on X as an “incredible ecosystem with “wonderful technology.”
- Ether.fi (ETHFI) and ethena (ENA) bucked the broader weakness, rising 2.63% and 1.27%, respectively, to extend a run of outperformance from DeFi tokens.
- Ondo ONDO$0.4105 is among the week’s more compelling movers, up 26% over seven days to $0.40 as tokenized real-world assets continue to attract speculative interest despite the subdued macro environment.
- CoinMarketCap’s Altcoin Season indicator read 50/100, down slightly from last week’s high as investors focused back on bitcoin.
