Crypto Sell-Off Persists as Bitcoin and Ether Fall; Altcoins Show Oversold Signals
Bitcoin and ether extended losses on Monday, mirroring broader equity weakness, while some altcoins moved into oversold territory, offering potential for a short-term bounce.
Bitcoin (BTC$88,535.99) dropped about 4% to $86,100, and ether slipped below $3,000 after a 6.7% decline in 24 hours. The downturn dragged the CoinDesk 20 Index down 4.3%, with all constituents in the red. Traditional markets also weakened: the Nasdaq Composite fell 2.6% for a second consecutive day amid concerns over a potential AI bubble and ahead of Tuesday’s U.S. labor data, including November nonfarm payrolls.
“Consensus forecasts point to roughly 50,000 new hires, less than half of September’s 119,000, with downside risk evident,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
Bearish Signals in Derivatives
Crypto’s losses have been amplified by thin liquidity, with derivatives showing persistent bearish pressure:
- Over $660 million in leveraged futures were liquidated in 24 hours, mostly long positions.
- BTC futures open interest rose above 700,000 BTC, signaling increased short exposure; XRP futures OI climbed to 1.96B XRP.
- BTC and ETH put options trade at a premium to calls, reflecting ongoing downside concern, with the $85K BTC put among the most popular contracts.
- Traders employed strategies including BTC put spreads, straddles, and ETH put butterflies.
Altcoins Seek Relief
Altcoins have struggled through a two-month correction. ASTER, ONDO, and STRK lost more than 10% in 24 hours. Oversold RSI readings for several tokens suggest potential for a modest rebound before U.S. employment data is released. XRP, SOL, and ADA are approaching key support levels that have historically acted as local bottoms, offering potential entry points for investors.
