Cryptocurrency markets fail to recover from Monday’s sell-off, Bitcoin Prices fell 4% to $86,100, with Ethereum falling back below $3,000 after falling 6.7% in 24 hours.
The slide sent the CoinDesk 20 index down 4.3%, with all members of the index lower, while traditional markets also fell. The Nasdaq Composite fell for a second straight day on Monday, falling 2.6% on concerns about the potential of an artificial intelligence bubble and weak employment data. The United States will release labor market statistics later on Tuesday, including November non-farm payrolls data.
Derren Nathan, head of equity research at Hargreaves Lansdown, said in an email: “Consensus forecasts point to around 50,000 new hires, less than half the 119,000 in September, but the range of expectations is much wider than usual.”
“If recent private employment data is anything to go by, the risk here is to the downside.”
Cryptocurrency markets have significantly underperformed stocks since the October crash, in part due to a lack of liquidity, meaning overall price movements continue to be exaggerated.
Derivatives positioning
- Volmex’s daily BVIV, which measures annualized expected price movements over a 24-hour period, remains locked in its recent range above 50%. That represents a 24-hour gain of 2.6%, which is nothing unusual even with key economic data about to be released.
- The exchange liquidated more than $660 million in leveraged futures bets in 24 hours. Most of them were long, clearing the market of bullish leverage.
- The global cumulative open interest (OI) of BTC futures exceeded 700,000 BTC, the highest level since November 21. Rising OI and falling spot prices are said to represent an influx of bearish short positions and confirm the downtrend.
- XRP’s futures OI rose to 1.96B XRP, the highest level since October 11.
- OI-adjusted cumulative volume delta declined for most major tokens, indicating strong net selling pressure.
- On Deribit, BTC and ETH puts continue to trade at a premium to calls, indicating continued downside concerns. The persistent put premium also stems from institutional interest in call coverage strategies.
- The $85,000 Bitcoin put option has become the second most popular option after the $100,000 call option.
- The block stream features BTC put diagonal spreads, put rationing spreads, and straddles. In the case of ETH, traders prefer put butterfly options.
token talk
- After two months of price correction, the altcoin market continues to crave bullish catalysts.
- ASTER, ONDO and STRK have all fallen more than 10% in the past 24 hours, underperforming the broader market.
- A silver lining for the altcoin market is that some coins are currently in “oversold” territory, according to the Average Crypto Relative Strength Index (RSI) indicator.
- This suggests the market may be ready for a small rebound ahead of U.S. jobs data.
- A number of coins including XRP, SOL, and ADA are also approaching key support levels that have provided a series of local bottoms over the past year, so this could be the area that sparks investor interest despite subdued altcoin sentiment.
