Bitcoin Rebounds from Low as Altcoins Surge in Crypto Markets Today
Bitcoin (BTC) has recently shown signs of recovery, rebounding from a dip that brought its price down to $86,000, the lowest point in over a month. The recovery began following the commencement of bitcoin futures trading on the CME at 23:00 UTC. Within nine hours, Bitcoin climbed more than 2% before facing resistance near $88,250.
Current Market Trends for Bitcoin and Altcoins
Despite this brief resurgence, Bitcoin remains entrenched in a downtrend, marked by a pattern of lower highs and lower lows that has persisted since October. Recent market dynamics have shifted investor sentiment towards risk-off, sparked partly by U.S. President Donald Trump’s speeches at Davos addressing various geopolitical issues, including Greenland and tariffs.
As a result, traditional safe-haven assets like gold and silver have surged to record highs, impacting Bitcoin’s image as a refuge asset. The correlation between Bitcoin and U.S. stock markets suggests that it may be viewed more as a risk asset currently.
Derivatives Positioning
- Bitcoin futures open interest stabilized around $22.6 billion.
- Funding rates have normalized to approximately 5% annually across major exchanges.
- Notably, OKX has shown a -3.8% funding rate, indicative of bearish sentiment.
- Three-month annualized basis rates on Binance and Deribit slightly increased to just above 5%.
- BTC options present strong conviction, with a 15% one-week 25-delta skew and 58% call volume dominance.
Recent data from Coinglass indicated liquidations totaling $744 million within 24 hours. This figure comprised a 77-23 split between long and short positions, with Ethereum (ETH), Bitcoin (BTC), and Solana (SOL) leading the liquidations.
Altcoin Resilience Amidst Bitcoin Weakness
While Bitcoin has shown vulnerability, the altcoin market experienced notable strength. Leading altcoins like Ethereum and XRP increased by 2.8%. Privacy coins such as Zcash and Monero saw gains of 6% and 3%, respectively.
The standout performance within the altcoin sector was among metaverse tokens. Axie Infinity (AXS) soared over 23%, contributing to a 6.92% rise in the CoinDesk Metaverse Select Index (MTVS), which has rallied 34.4% year-to-date.
Comparison of Market Indices
- CoinDesk 20 (CD20) Index: down 0.52% YTD.
- CoinDesk 80 (CD80) Index: up 2.5% YTD, showcasing the relative strength of altcoins.
The native token of the RIVER stablecoin protocol has impressively increased over 2,100% in the last 30 days, benefiting from a recent spike of 34% within 24 hours.
Market Indicators and Liquidation Concerns
The “altcoin season” indicator is currently at 28/100, which is substantially higher than last month’s 16/100 but still below September’s peak of 76/100. The decline in liquidity and market depth since the significant liquidation event in October has resulted in exaggerated price movements, leading to frequent liquidations during sell-offs and rebounding phases.
As traders navigate this complex environment, monitoring key levels and emerging trends will be crucial for positioning within the cryptocurrency market.
