Bitcoin (BTC), major tokens drop as traders position for downside protection: Crypto Markets Today
Bitcoin and major tokens declined as derivatives data indicated a clear risk-off shift favoring downside protection.Summary
Bitcoin extended recent losses, stabilizing below $70,000 following a steep drop, as derivatives data signals a strong risk-off sentiment among traders. Key indicators include falling futures open interest, negative funding rates, and elevated demand for near-term downside protection evidenced by high implied volatility and skew in options markets. The CoinDesk 5 Index (CD5) fell 3.4%, with Ether dropping about 5% and underperforming Bitcoin. This bearish shift is characterized by deleveraging in BTC futures, with open interest dropping significantly and funding rates turning negative, suggesting short sellers are gaining influence. Meanwhile, the launch of crypto wallet Rainbow’s RNBW token faced significant issues, including distribution delays and infrastructure problems, causing its price to plunge about 75% from its ICO price.
(Source：CoinDesk)