The crypto market fell 2.18% over the last 24 hours, extending a 7-day decline of 1.76%, as reduced leverage and mixed macro signals pressured prices.
Derivatives unwind – Open interest dropped 2.55% as traders cut risky bets, with BTC liquidations down 56% from yesterday.
Bitcoin dominance rises – BTC’s share of crypto’s value hit 57.92% (up 0.1% in 24h), signaling risk-off rotation.
Negative crypto-equity correlation – Market moved inversely to Nasdaq-100 (QQQ), with a -0.82 correlation over 24h.
Deep Dive
1. Leverage Liquidation (Bearish Impact)
Overview:
Derivatives open interest fell 2.55% to $961B, led by a 21.55% drop in perpetuals volume. BTC liquidations totaled $16.4M (-56% vs prior day), with long positions dominating ($15M liquidated).
What it means:
Traders are reducing exposure ahead of key U.S. jobs data (due Friday), unwinding leveraged bets that amplified recent volatility. Lower funding rates (+0.004%) suggest cooling speculative demand.
2. Rotation to Safety (Mixed Impact)
Overview:
Bitcoin dominance rose to 57.92%, near its 2025 high of 65.12%, while the Altcoin Season Index fell 3.7% to 52 (neutral).
What it means:
Investors are favoring BTC’s relative stability as ETH and altcoins underperform. ETH dominance dropped to 13.65% (-0.5% weekly) despite ETF inflows, signaling caution toward riskier assets.
3. Regulatory Uncertainty (Bearish Impact)
Overview:
News of China’s 2017 ICO ban resurfaced, while Australia’s court ruling exempting stablecoins from securities laws highlighted fragmented global oversight.
What it means:
Regulatory noise is dampening sentiment, particularly for altcoins. Stablecoin volumes fell 12.9% as the SEC’s pending decisions on ETH ETF structures loom.
Conclusion
The dip reflects deleveraging, risk aversion, and regulatory ambiguity. While Bitcoin’s resilience suggests institutional demand remains intact, altcoins face headwinds until macro clarity emerges. Watch Friday’s U.S. Nonfarm Payrolls data—a weak jobs report could reignite rate-cut bets and reverse today’s risk-off stance.
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