The crypto market slides early Thursday as ether, the second-largest token, fell more than 3% to fall below $4,000. The decline caused a major liquidation, including a loss of millions of dollars for one whale.
It also fell 1.5% to $115,600, nearly erasing profits from Wednesday’s rebound. Other major cryptocurrencies could be attributed to the increasing possibility of US government shutdown amid the decline of the Nasdaq and the S&P 500 future.
Coins like recent outperformers ASTR, Avax and Pump have suffered double-digit losses over 24 hours.
One analyst pointed to cryptocurrency as an early warning indicator for the broader financial markets.
“We’re committed to providing a range of services to our customers,” said Alex Kuptsikevich, Chief Market Analyst at FXPRO. “Since last week’s Federal Reserve interest rate cuts, altcoins and small developed market currencies have weakened, and major US indexes have begun following this trend since Tuesday.”
Token talk
By Francisco Rodriguez
- Hyperliquid hype token prices have significantly reduced performance in the broader crypto market, primarily due to increased competition from BNB chain-based derivatives.
- Supported by YZI Labs, Aster overtakes high lipids in its persistent daily trading volumes this week, with the upset that sent shockwaves through Crypto’s on-chain trading ecosystem.
- In just a week, Astor’s open interest inflated 33,500%, jumping from $3.7 million to $1.25 billion. The 24-hour trading volume reached $35.8 billion, more than twice the high lipids, which recorded $10 billion, according to Defillama data. The Aster total value locked (TVL) also jumped, almost tripling to $1.855 billion.
- Aster, the platform’s token, has added over 344% to $2 over the past week, bringing a fully diluted valuation to $15.9 billion. The hype slid from $58.4 to $43.
- Hype’s drop coincides with investors’ concerns about future token unlocks. In late November, the 237 million hype worth more than $10 billion at current prices will gradually become liquid over two years.
Positioning of derivatives
- Open interest (OI) in futures tied to many major tokens has declined over the past 24 hours, with Avax seeing its most sharp decline, nearly 12%.
- Still, the overall position in BTC futures remains rising, with the OI hovering near record highs. ETH futures OI increased to 14.45 million ETH despite a large-scale liquidation of decentralized exchange lipids.
- The permanent OI of SOLs dominated by large exchanges USDT and dollars has increased slightly from SOLs of 29 million since Asian time, dropping the spot price to $200. Some traders seem to be shorting down decline.
- XRP, SOL, HBAR, TRX, SUI, and XLM stand out as coins with negative funding rates, pointing to bearish short position bias.
- The CME has resumed the downtrend of BTC futures while Ether futures OI has returned to highs above ETH of 2.2 million. ETH’s three-month annual base fell from 9.8% to 7% with signs of weakening bull pressure.
- In Deribit, the BTC and ETH Put Put options continue to attract premiums compared to calls and draw bearish pictures. Some traders have picked up the sub-strikes outside the money that ether places through the paradigm of the OTC desk.