The crypto market continued its decline, with major cryptocurrencies falling for the fourth consecutive day. In addition to weakening spot prices, the futures and options markets also showed a more defensive stance, indicating that short-term investors are increasingly concerned about future volatility.
Major cryptocurrencies and related sectors fell in tandem.
In the past 24 hours, Bitcoin fell 2.5%, dropping below $62,400. The CoinDesk 20 index fell 3.3%, with Ethereum, XRP, and SOL generally weakening, and smart contract platform and DeFi-related tokens experiencing even larger declines.
Among them, the index tracking smart contract platform tokens fell by 4%, and the CoinDesk 80 and DeFi indices also declined. Market risk appetite weakened, which is related to the continued selling pressure following the Federal Reserve's previously hawkish statements.
Strategy and mining companies are becoming new concerns.
The report points out that concerns surrounding Strategy and its preferred stock STRC continue to affect market sentiment. Traders worry that the largest Bitcoin holder in this publicly traded company may face pressure to sell Bitcoin to maintain its financing structure.
Meanwhile, if the price of Bitcoin continues to fall below the production costs of some mining companies, those facing financial pressure may be forced to sell their holdings. Marex analysts believe that these two types of potential sellers have become important factors in the recent market repricing.
Long liquidation and rising bearish demand
Over the past 24 hours, more than $450 million in leveraged positions have been liquidated, most of which were long positions. Open interest in Bitcoin and Ethereum futures remained largely unchanged, but SOL futures open interest rose to over 70 million coins, nearing its high earlier this month, while XRP is also at its highest level since October of last year.
- Funding rates for ADA, XLM, and BCH have been reduced to -20% to -30%.
- Funding fees for most mainstream cryptocurrencies remained flat or negative.
- Demand for put options in the Bitcoin options market has increased significantly.
The report also stated that the adjusted cumulative trading volume difference for most mainstream tokens was negative, indicating that active selling still dominates trading. In the options market, traders are increasing their holdings of protective put options, with some betting that Bitcoin may fall to $52,000 or lower in the coming weeks.
LAB bucked the trend and rose, but the situation remains controversial.
Amid a general market downturn, LAB, the native token of the AI trading platform LAB Terminal, has bucked the trend, rising 57% in the past 7 days and accumulating a 92% increase this month.
However, on-chain investigator ZachXBT recently questioned the token's holding structure, claiming that insiders allegedly control 95% of the supply and that it attracts retail funds through high-interest off-exchange loans, extended unlocking periods, delayed reward distribution, and undisclosed market-making arrangements.
