Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The crypto market suffered a sell-off on Tuesday along with bitcoin approaching its lowest level since June and ether trading at $3,480, the lowest since August.
The selling pressure led to about $1.4 billion in liquidations on derivatives exchanges, which at press time are performing better than in October, when Binance’s automatic deleveraging engine caused havoc by liquidating a large number of traders.
One of the catalysts for the sale is the strength of the dollar, with the DXY index hitting 100 for the first time since July after rallying off 96.2 in September.
The dollar is rising as analysts suggest the Federal Reserve is slowing its rate-cutting cycle. This led to a bearish reversal in risk assets such as bitcoin and the broader crypto market.
Derivatives positioning
By Omkar Godbole
- Volmex’s Bitcoin Volatility Index, BVIV, which represents implied, or expected, 30-day price volatility is rising, following the golden cross of its 50- and 200-day moving averages.
- The spot price of BTC has developed a negative correlation with volatility over the past year, meaning further gains in BVIV could be marked by price weakness.
- Positioning in ZEC remains high, with open interest (OI) near lifetime highs of around 1.59 million ZEC. However, financing rates have slipped downward, a sign that some traders are shorting futures, possibly against long spot positions.
- On the CME, futures linked to BTC and ETH continue to see divergent trends, with activity mostly focused on ethereum futures, where OI remains close to record highs.
- On Deribit, BTC options show an all-time bias for puts, a sign of lingering concerns. Ether options show bullishness after February 2026 expiration.
- OTC flows on Paradigm showed the demand for ether for November 7 expiration placed at the $3,500 strike.
Token Talk
By Oliver Knight
- The altcoin market suffered a bruising session in Asia with several tokens falling by more than 15%, resulting in a wave of liquidations of $1.37 billion, according to the CoinGlass.
- HyperLiquid rivals aster led the decline, sliding 18% to $ 0.88. Interestingly, this is below the price paid by Binance founder CZ, who announced a $1.8 million purchase at $0.90 over the weekend.
- “Every time I buy coins, I get stuck in a losing position, 100% record”, CZ wrote about X Tuesday.
- Numerous tokens included now it finds itself at critical levels of support that led to a rebound two weeks ago, although it is worth noting that the likes of solana and BNB they fell to cool lows.
- One sector that has outperformed the broader market has been privacy coins, with and both still in the green for the month.
- Tuesday also saw exceptional demonstrations and two tokens considered “dino coins” by some as they were launched in 2017 and 2014 respectively. Both tokens have privacy features and seem to be riding on the coattails of XMR and ZEC.
- DCR is up 146% while DASH is up 65% on significant volume, showing that traders can rotate out of a weaker market.
