What to Know:
- Bitcoin is showing resilience around the $103,000 mark, recovering from a recent dip below $100,000.
- Altcoins are underperforming relative to Bitcoin, with several tokens trading below key support levels.
- Derivatives markets indicate a cautious sentiment with increased activity in put options for Bitcoin and Ether.
Bitcoin is demonstrating stability around $103,000 after rebounding from a mid-week dip. Despite this recovery, the cryptocurrency remains in a technical downtrend from its October high. The altcoin market is showing even more pronounced weakness, with Bitcoin dominance increasing.
A significant amount of leveraged crypto futures positions were liquidated, primarily short positions. Open interest is growing in some altcoins, while declining in others like XRP, suggesting a shift in market focus and risk appetite. Funding rates for certain tokens indicate a bearish bias, possibly as traders hedge against potential corrections following rallies.
A new governance proposal on decentralized exchange Hyperliquid is drawing sharp debate across the protocol’s community channels.
Bitcoin CME futures positioning is light, with open interest at its lowest since late September, and ether open interest has also decreased from record highs. Near-dated Bitcoin and Ether options on Deribit indicate some nervousness, with traders buying put options. This activity in the derivatives market reflects a cautious outlook among some investors.
The proposed changes to Hyperliquid’s fee distribution model are causing debate within the community. Critics argue that opening up protocol revenue to external projects could lead to abuse, while supporters believe it could boost developer activity and governance participation. The outcome of this proposal could have significant implications for the Hyperliquid ecosystem.
Overall, the crypto market is showing mixed signals, with Bitcoin demonstrating resilience while altcoins face headwinds. Derivatives markets reflect a cautious sentiment. Monitoring regulatory developments and macroeconomic indicators will be crucial for navigating the evolving landscape.
Source: Original article
