Cryptocurrency Market Experienced “Sell the News” Reaction to Bitcoin on Federal Reserve Interest Rate Cut and US-China Trade Agreement The support level returns to $110,000.
Traders are now wondering whether the recent high near $116,000 is a lower high than Bitcoin’s all-time high of $126,000 at the beginning of the month, which signals a downtrend and reversal.
Bitcoin’s dominance declined by several basis points on Thursday, suggesting that some altcoins are outperforming BTC, even as market weakness is reflected across the crypto majors.
Positioning of derivatives
Written by Saksham Diwan
- Despite the Bitcoin price drop after yesterday’s Fed news, the BTC futures market is showing strength. Open interest (OI) increased slightly to $27.2 billion, confirming minimal liquidations and quick buyer re-entry.
- Importantly, funding rates, which were highly polarized, have normalized and are now trending toward neutral and roughly flat rates across most venues. This indicates underlying market resilience and less volatility and more cautious sentiment compared to previous uncertainties.
- The BTC options market maintains a strong bullish trend, although near-term confidence has eased.
- The term structure of implied volatility (IV) still shows short-term backwardness before moving into long-term contango. The one-week 25 delta skew has fallen to 8% from 10% yesterday, but traders are still paying a hefty premium for short-term call options.
- This decline in confidence is reflected in the 24-hour put-call volume ratio, which remains bullish at 55:44 in favor of calls.
- According to Coinglass data, 24-hour liquidations totaled $821 million, with a 79-21 split between longs and shorts.
- BTC ($368 million), ETH ($188 million), and Others ($52 million) were the leaders in nominal liquidations. Binance’s liquidation heatmap shows $109,700 as the core liquidation level to monitor in case of a price decline.
token talk
Written by Oliver Knight
- More than $80 billion has been wiped from crypto market capitalization in the past 24 hours as traders “sold the news” following the Fed rate cut and the US-China trade deal.
- Bitcoin and ether the two largest cryptocurrencies are both down 2.5% as they struggle with support levels. XRP and XLM were the worst performing tokens among the largest 20 tokens, losing 3.5% and 3.3% respectively.
- plasma continues to make headlines for all the wrong reasons, dropping 14% in 24 hours and 81% overall since September 28th.
- There was a glimmer of optimism across the altcoin market with US President-backed meme coin TRUMP, which rose 6.8% after reports emerged that token manager Fight Fight Fight was planning to acquire US funding platform Republic.
- TRUMP is up 45% this week, but at $8.40 it remains well below its all-time high of $45.47.
- Bitcoin’s dominance has decreased slightly from 59.3% to 59.0%, suggesting that some altcoins have outperformed Bitcoin during this recent period of selling pressure.