The crypto market staged a recovery on Monday following the weekend's $500 billion bloodbath that resulted in a $10 billion drop in open interest.
Bitcoin BTC$115,034.02 rose by 1.4% while ether ETH$4,145.59 outperformed with a 2.5% gain. Synthetix (SNX, meanwhile, stole the show with a 120% rally as traders anticipate "perpetual wars" between the decentralized trading venue and HyperLiquid.
Plasma (XPL) and aster (ASTER) both failed to benefit from Monday's recovery, losing 4.2% and 2.5% respectively.
Derivatives Positioning
- The BTC futures market has stabilized after a volatile period. Open interest, which had dropped from $33 billion to $23 billion over the weekend, has now settled at around $26 billion. Similarly, the 3-month annualized basis has rebounded to the 6-7% range, after dipping to 4-5% over the weekend, indicating that the bullish sentiment has largely returned. However, funding rates remain a key area of divergence; while Bybit and Hyperliquid have settled around 10%, Binance's rate is negative.
- The BTC options market is showing a renewed bullish lean. The 24-hour Put/Call Volume has shifted to be more in favor of calls, now at over 56%. Additionally, the 1-week 25 Delta Skew has risen to 2.5% after a period of flatness.
- These metrics indicate a market with increasing demand for bullish exposure and upside protection, reflecting a shift away from the recent "cautious neutrality."
- Coinglass data shows $620 million in 24 hour liquidations, with a 34-66 split between longs and shorts. ETH ($218 million), BTC ($124 million) and SOL ($43 million) were the leaders in terms of notional liquidations. Binance liquidation heatmap indicates $116,620 as a core liquidation level to monitor, in case of a price rise.
Token Talk
By Oliver Knight
- The crypto market kicked off Monday with a rebound in the wake of a sharp weekend leverage flush. According to data from CoinMarketCap, the total crypto market cap climbed roughly 5.7% in the past 24 hours, with volume jumping about 26.8%, suggesting those liquidated at the weekend are repurchasing their positions.
- A total of $19 billion worth of derivatives positions were wiped out over the weekend with the vast majority being attributed to those holding long positions, in the past 24 hours, however, $626 billion was liquidated with $420 billion of that being on the short side, demonstrating a reversal in sentiment, according to CoinGlass.
- The recovery has been tentative so far; the dominance of Bitcoin remains elevated at about 58.45%, down modestly from recent highs, which implies altcoins may still lag as capital piles back into safer large-cap names.
- The big winner of Monday's recovery was SNX$2.4709, which rose by more than 120% ahead of a crypto trading competition that will see it potentially start up "perpetual wars" with HyperLiquid.
