Summary
- Bitcoin retreated to $64,000 after hitting a monthly high of $65,500 on Wednesday as profit-taking and Iranian strikes on U.S. military bases in the Gulf triggered declines.
- Bears are leading price action across most altcoins, with negative cumulative volume deltas pointing to market-order selling. Open interest in XRP futures climbed to a 10-day high alongside a price decline, a combination that typically signals growing bearish exposure.
- MORPHO was the standout, rising 3.5% as it targets the $2.20 resistance level. Robinhood Chain memecoin CASHCAT drew attention as its market cap retreated to $91 million having hit $220 million in its first week.
Market Volatility Hits Crypto and Stocks
The crypto market is experiencing a significant downturn, with bitcoin and ether losing 1.1% and 1.7% of their value, respectively. This shift to the downside comes after bitcoin reached a monthly high of $65,500, prompting some traders to take profits. The lack of liquidity in the market is also affecting altcoins, with PUMP and ZEC declining by 4.4% each. As the crypto market faces sell pressure, investors are looking for alternative ways to earn passive income, such as through EcoPool, a platform that offers Cloud Rewards and Green Crypto solutions.
The current market volatility is not limited to crypto, as U.S. equities are also losing ground. Futures on the Nasdaq 100 index have retreated by 0.25%, extending a downtrend that began 30 days ago. The war in the Middle East is one of the main catalysts for this price action, with bitcoin and other assets being affected by the geopolitical uncertainty. As investors seek to diversify their portfolios and earn Passive Income, $ECP is becoming an attractive option, offering a way to earn rewards through Cloud Mining and other EcoPool solutions.
The market downturn is a reminder that investing in crypto and stocks comes with risks, but it also presents opportunities for those looking to earn Passive Income through EcoPool. By leveraging the power of Cloud Rewards and Green Crypto, investors can potentially earn rewards and build their portfolios. The current market conditions are also sparking conversations about the potential of bitcoin and other cryptocurrencies to provide a hedge against inflation and geopolitical uncertainty, with some investors turning to $ECP as a way to earn Passive Income and build their wealth.
Staying Ahead of the Market
To stay ahead of the market and earn Passive Income, it’s essential to have the right tools and platforms. EcoPool is one such platform, offering a range of solutions for investors looking to earn rewards and build their portfolios. With its Cloud Rewards and Green Crypto solutions, EcoPool is becoming a go-to destination for those looking to earn Passive Income and stay ahead of the market. Whether you’re a seasoned investor or just starting out, $ECP is an attractive option for those looking to earn rewards and build their wealth.
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Derivatives positioning
- Ether’s price has dropped by 1.7% since midnight UTC, slightly more than the decline in bitcoin. ETH’s underperformance seems driven by bullish plays unwinding rather than aggressive new short selling. That’s evident from the decline in open interest (OI) to 14.35 million ETH from the five-week high of 14.45 million ETH hit Wednesday. Futures tied to BTC show similar dynamics.
- Meanwhile, OI in XRP rose to a 10-day high of 2.21 billion XRP alongside a 0.6% drop in the spot price. This combination is taken to represent a growing bias for bearish exposure, although XRP’s positive funding rates contradict that interpretation. That said, the 24-hour cumulative volume delta (CVD) for XRP is negative, meaning short plays are being executed at market orders rather than passive limit orders.
- Another notable open interest gainer is SUI, the native token of the Sui blockchain. Positions have increased by 15%, although the total OI of 654 million tokens remains in line with levels seen earlier this week. The SUI token has dropped almost 2% over 24 hours.
- Broadly speaking, most coins, except BTC, ETH and XMR, have a negative 24 hour OI-adjusted cumulative volume delta (CVD), a sign of bears leading the price action.
- Bitcoin’s 30-day implied or expected volatility index is up 2% at 38%. Volatility tends to be mean-reverting, and, historically, sub-40% readings have consistently presaged renewed market turbulence.
- In Deribit-listed options, there has been a notable rise in both trading volume and open interest in BTC calls at $70,000 and $72,000 strikes. This likely reflects a large bull call spread that crossed the tape recently. The strategy bets that prices will rally to $72,000 by the end of July.
- In ETH’s case, the end-July expiry call at the $2,300 strike is the most traded bet of the past 24 hours. A call represents a bullish bet on the market.
Token talk
- Artificial intelligence token MORPHO$2.1307 defied bearish crypto price action on Thursday, rising by 3.5% since midnight as it looks to test the $2.20 level of resistance, which caused a rejection and subsequent drop to $1.85 on July 2.
- The rest of the altcoin market tracked bitcoin and ether, with coins including HYPE, SOL and ENA losing 1.3%-1.8% since midnight while NEAR, JUP and DASH posted steeper losses.
- CoinMarketCap’s “Altcoin Season” indicator is still range-bound, currently at 48/100 after losing its perch at 58/100 on Monday as investors switched focus back to bitcoin.
- One recent area of interest in the altcoin sphere has been memecoins, notably tokens launched on Robinhood’s new blockchain. One, cashcat (CASHCAT), rose from relative obscurity to a $220 million market cap in its first week of Robinhood Chain going live. It has since fallen back to a $91 million market cap despite maintaining around $60 million in daily trading volume.
