Risk assets retreat as BTC, ETH prices drop further, dollar strengthens: Crypto Markets Today

Crypto markets experienced a significant selloff overnight, with Bitcoin falling another 2.7% and Ether dropping 3.5% since midnight UTC, compounding Thursday's losses. This broader market weakness was mirrored in precious metals, as silver tumbled 20% from its high and gold fell 11%. The downturn coincided with a 0.57% gain in the U.S. dollar index (DXY), fueled by expectations of Kevin Warsh becoming the new Federal Reserve chairman. The market rout led to $1.8 billion in liquidations across crypto derivatives as leveraged traders were caught off guard. Derivatives positioning showed open interest declining for most major cryptos, perpetual funding rates flipping negative, and increased demand for downside protection, evidenced by pricier puts over calls on Deribit. Despite the overall slump, bitcoin dominance slightly decreased, suggesting some speculative rotation into altcoins, although some high-flying tokens like RIVER saw massive unwinds after significant rallies.

(Source：CoinDesk)