Bitcoin has rebounded from an overnight low below $121,000 to over $121,000, with a surge in privacy coins such as ZEC and DASH.
Traders on decentralized exchanges remained bullish, favoring BTC and ETH calls with high out-of-the-money strikes. Most analysts held a constructive bias.
“The market is swirling at elevated levels, calm, liquid and quietly bullish. Flows to institutional investors remain the backbone of this stage, with ETFs acting as a liquidity bridge between traditional and digital finance. Despite the short-term turmoil, macro liquidity waves, corporate adoption and structural inflows all argue for continuation,” said BRN head of research Timothy Misil.
Positioning of derivatives
Written by Omkar Godbole
- According to data from Coinglass, many indefinite short positions in BTC face the risk of liquidation above $121,600. Therefore, a sustained move above the above levels could trigger a short squeeze and lead to a rapid rally towards record highs.
- Glasnord said the market is experiencing a re-leverage reset, with volatility washing away excess positions on both sides. Still, the overall position in the global BTC futures market remains strong, with open interest just shy of the all-time high of 755,000 BTC.
- BNB, XRP, ADA, and TRX have seen a decline in futures open interest (OI) over the past 24 hours, indicating capital outflows. BTC OI rose 1% and ETH rose just 0.4%.
- The XMR market is slightly overheated, with annualized funding rates approaching 60%, a sign of frenetic demand for bullish bets. Funding rates for other major tokens, including BTC and ETH, paint a bullish picture, but there is nothing out of the ordinary.
- On decentralized exchange Derive, open interest in options expiring on October 31st is concentrated in calls with strike prices of $128,000 and $145,000, reflecting a bullish bias. ETH options activity is similarly bullish, with OI focused on $5,000 and $6,000 calls.
- However, on Deribit, the call-put skew for BTC and ETH remains slightly negative across time frames, reflecting a bias towards protective puts. Paradigm’s block flow included ETH puts and straddles.
token talk
Written by Oliver Knight
- The recent craze for Chinese meme coins, which sent tokens like GIGGLE, SI, and Hajimai soaring on PancakeSwap V2, suddenly died down.
- Within 24 hours, many of these assets lost more than 95% of their value, wiping out speculative profits built on hype and social momentum.
- The crash coincided with a broader downturn in the memecoin market, fueled by FUD and false rumors about the token listing, which Binance founder Changpeng “CZ” Chao described as a “bloodbath.”
- This plunge came after Binance rolled out its “Meme Rush” platform, which aims to provide a structured path to tokens before they become tradable on various decentralized and centralized exchanges.
- However, just like the Solana meme coin disappeared in February after the launch of TRUMP and MELANIA, the BNB chain meme appears to be following the same path of extinction.
- Pancake Swap trading volume remains swollen to $18 billion in the past 24 hours, and while a small number of newly launched tokens have been sold, it is notable that liquidity remains relatively low. Wrapped BNB (WBNB) has just $35 million in liquidity compared to its fully diluted value of $1.6 billion.