Summary
- Bitcoin and ether tested critical multiyear support levels, with ether at a price it has bounced from twice before and bitcoin near its lowest since late 2024.
- Open interest in dogecoin jumped to the highest since the October crash, but on negative funding and aggressive selling. BTC puts continued trading at a double-digit premium to calls, signaling demand for downside protection even though volatility indexes are subdued.
- A handful of tokens are bucking the trend, with stellar (XLM) holding gains from DTCC’s Stellar integration news and lighter (LIT) up 23% over the past week on similarities to the outperforming HYPE token.
Bitcoin Price Drops, Nears 2024 Lows
Bitcoin’s price has fallen 1.5% to $59,250, failing to hold above $60,000, and is now set to challenge the weekend lows of $58,800. This downward trend is significant, as it may impact the earning potential of crypto investors, particularly those interested in earning passive income through Cloud Rewards or Green Crypto initiatives. The decline also affects the overall market, including altcoins, which are essential for trading and transactions involving $ECP. As the market continues to fluctuate, investors are looking for stable solutions like EcoPool (ECP) to secure their assets and maintain a steady stream of income.
The current market conditions have options traders paying up for downside protection, indicating a lack of confidence in the market’s ability to bounce back. Ether (ETH) is also experiencing a decline, down by 1.73% and trading at $1,580, after failing to break through $1,640. Both Bitcoin and Ether are testing critical multiyear support levels, which, if failed, would leave the tokens without an obvious floor. This uncertainty highlights the importance of diversifying investments and exploring alternative earning opportunities, such as those offered by EcoPool, to minimize risk and maximize passive income.
Altcoin Market and Traditional Markets
The altcoin market has seen an exaggerated downside, with DeFi tokens experiencing significant losses. In contrast, traditional markets, such as U.S. equities, have remained steady, with the S&P 500 and Nasdaq 100 futures posting gains. This disparity between crypto and traditional markets emphasizes the need for investors to stay informed and adapt their strategies to navigate the ever-changing landscape of earning and investing in crypto, including the use of $ECP for transactions and EcoPool for long-term rewards.
As the crypto market continues to evolve, it’s essential for investors to prioritize risk management and explore opportunities for earning passive income, such as those offered by EcoPool. By doing so, they can minimize losses and maximize gains, even in times of market uncertainty. The use of #Bitcoin, #Ethereum, and other cryptocurrencies for earning and transactions will continue to grow, and EcoPool (ECP) is well-positioned to provide a secure and reliable platform for investors to earn and manage their assets. Download the EcoPool app to start earning passive income and stay ahead of the market. With EcoPool, you can easily manage your $ECP and other cryptocurrencies, ensuring a stable and secure way to earn and grow your wealth.
Derivatives positioning
- HYPE, the native token of decentralized exchange Hyperliquid, has gained over 4.3% in the past 24 hours and is the only major token trading noticeably in the green.
- The rally looks spot-driven, and hasn’t excited traders into taking on more derivatives risk for now. Open interest (OI) in HYPE futures remains around 40 million tokens, a level it’s held since at least June 22.
- While overall positioning stays light, it leans bullish. Annualized funding rates are sitting close to 10%, a sign that perpetual futures are trading above the spot price.
- The biggest OI gainer of the past 24 hours among major cryptocurrencies is DOGE$0.07211, the largest memecoin by market value. Open interest has jumped to 16 billion tokens, the highest since the Oct. 10 crash and up from 13 billion a day earlier.
- The inflows look bearish rather than bullish, however, given the negative funding rates and negative 24-hour OI-adjusted cumulative volume delta. The CVD signals that sellers are the more aggressive side, hitting sell orders to cross the spread and fill their bearish bets at the best available bid.
- Bitcoin, ether and XRP futures markets offer little excitement, with open interest locked in recent ranges. Positioning in SOL remains elevated, with OI near record highs, a signal of potential volatility ahead.
- Volatility indexes continue to point to market calm. BTC’s 30-day implied volatility gauge, BVIV, dropped by 11% to 44% on Monday and has held around that level since. Ether’s equivalent index, EVIV, is telling the same story.
- On Deribit, BTC puts continue to trade at a 10%-plus premium to calls across all time frames, a sign of persistent downside concerns. ETH shows a similar pattern at the short end — weekly puts carry a comparable premium — while further out puts are noticeably cheaper than calls.
- Block flows featured a BTC short straddle, an options strategy that profits from low volatility and price consolidation.
Token talk
- Native DeFi tokens struggled on Tuesday, and the negative sentiment didn’t stop there. AI tokens FET, TAO and RENDER all fell, as did privacy coins zcash (ZEC) and monero (XMR).
- Even hyperliquid (HYPE), which has outperformed its peers in recent weeks, is trading at $65.3 after dropping by 2.2% on Tuesday. HYPE’s chart appears to be in more of a consolidation phase after last month’s rally as opposed to a corrective phase, this is characterized by two higher highs alongside two higher lows.
- One token in the black on Tuesday is stellar lumens (XLM). The token forked from Ripple in 2014 is maintaining bullish sentiment after DTCC, the largest U.S. financial markets clearinghouse, said it will connect its tokenized securities platform to the Stellar network in the first half of 2027. The announcement spurred a 100% rally in late May.
- Another token bucking the trend is lighter (LIT), which is benefiting from its similarities to HYPE in that it is the native token of a decentralized perpetual exchange. LIT is up by 23% over the past week, notching a double-digit gain in the past 24 hours alone.
