Crypto bears are in control as major tokens retreat and Bitcoin hovers near $88,000 after a risk-off shift. The CoinDesk 20 index declined about 2.9%, reflecting a broader retreat across markets. Cumulative notional open interest in all crypto futures fell nearly 3% to $132.26 billion, signaling rising risk aversion. Crypto futures liquidations reached $348.30 million, up 13% in the past 24 hours.
Open interest in futures tied to HYPE dropped over 12%, leading capital outflows from major tokens including Bitcoin, Ether, Solana and XRP. Annualized perpetual funding rates for the biggest cryptocurrencies are barely above zero after a spike earlier this week. Funding rates for XLM have flipped decisively negative, signaling bearish, or short, bets. In Deribit’s options market, BTC and ETH puts remain at a premium to calls, with the put bias relatively stronger for Ether.
Optimism’s governance approved a 12-month plan to buy back OP tokens using revenue generated by its Ethereum layer-2 network, pending a final vote. If the Joint House reaches a 60% majority, ETH earned from sequencer fees would be converted into OP starting in February. About half of last year’s Superchain revenue—over $17 million—would go toward monthly token purchases, with Base and World Chain among the included networks.
OP’s price has fallen about 80% year over year and now trades below 29 cents, after a 5% drop in the last 24 hours. The foundation argues the buyback would help align the OP token with network growth while preserving funds for ecosystem development.
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