Bitcoin and Ether fell around 7% as risk-off sentiment intensified across crypto markets. The market’s fear gauge, the Fear and Greed index, slid to 11.00, the year’s low, while BTC and ETH declined more than 7% and altcoins broadly followed. The market also saw a surge in liquidations, with over $800 million in leveraged bets liquidated on centralized exchanges in the past 24 hours as BTC traded below the pivotal $70,000 level. Open interest in futures markets fell to $103 billion, signaling capital outflows and renewed caution among traders.
Despite the sell-off, 90-day bitcoin futures remained at a premium to the spot price, a dynamic often observed before the end of bear markets. Analysts highlighted negative funding rates for several altcoins and increased open interest in select tokens such as XAUT, LINK, TRX, and PEPE, suggesting a mixed picture for the broader trend. On Deribit, options data showed peak fear with bitcoin and ether puts trading above calls, reinforcing cautious sentiment. The altcoin market broadly tracked BTC lower, with Monero and Zcash dropping as much as 7%, while XRP fell more than 10% amid liquidations of roughly $30 million.
An outlier was the MYX token, up about 4% despite the broad sell-off, underscoring a bifurcated market. The CD20 index declined 8.34% over the past 24 hours, while the CD80 slumped 5.92%, reflecting the broader risk-off environment. Analysts noted that conditions resemble a sell-off seen in May 2022, which ended in consolidation before a further drop, signaling potential further downside ahead if macro headwinds persist. The market also faced macro risks from oil volatility tied to geopolitical tensions, which could feed inflationary pressures and weigh on crypto prices.
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