Crypto markets edged lower as investor sentiment remained cautious, with the Fear and Greed Index firmly signaling “fear.” Meanwhile, equity futures moved higher, creating another gap between traditional markets and digital assets. The main highlight of the session was PUMP, which jumped 20% after gaining attention across social media.
The broader crypto market continued to weaken, with bitcoin (BTC) falling about 1% since midnight UTC. Ether (ETH) performed slightly better, declining 0.65%, even as other risk-sensitive assets, including U.S. stock futures, moved higher.
Nasdaq 100 futures climbed 0.35%, while S&P 500 futures gained 0.20%, widening the performance gap between cryptocurrencies and equities that has remained a key market trend this year.
Macro conditions offered little direction for crypto traders. Gold remained steady above $4,000, while the U.S. Dollar Index (DXY) was largely unchanged, providing no major catalyst for digital assets.
CoinMarketCap’s Fear and Greed Index stood at 34, reflecting continued market anxiety. Meanwhile, the average RSI across crypto assets slipped to 44.07, moving closer to oversold levels that previously helped trigger July’s recovery rally.
Derivatives Market Overview
Futures activity rises without strong conviction
Crypto derivatives markets showed increased trading activity, but traders appeared more focused on adjusting existing positions rather than building new ones. Futures volume jumped 81% over the past 24 hours to $127 billion, while open interest remained steady near $111 billion.
Traders remain cautious on leverage
Bitcoin futures open interest remained around 750,000 BTC despite bitcoin recently pushing above $64,000. The lack of additional leverage suggests traders are hesitant to take on greater risk. Similar caution was visible across ether and XRP futures markets.
Solana positions continue to decline
Solana (SOL) experienced further contraction in derivatives activity, with futures open interest dropping to 62 million tokens, its lowest level since early May. The figure is significantly below the June 24 peak of more than 76 million tokens, indicating investors have reduced exposure and closed positions.
Bitcoin Cash sees unusual activity
Bitcoin Cash (BCH) moved against the broader trend, with futures open interest rising 20% to 1.73 million tokens, matching the record level reached on June 21. The increase in leveraged positions could create additional volatility, especially as BCH dropped 3% over the past day to around $213.
Bearish pressure dominates major tokens
Selling pressure remained visible across many leading cryptocurrencies, with negative 24-hour cumulative volume delta (CVD) readings indicating that sellers were controlling market activity. Among major assets, privacy-focused Zcash (ZEC) recorded one of the weakest CVD readings.
Volatility concerns return
Traders are monitoring bitcoin’s 30-day implied volatility index (BVIV), which is approaching 36%. This level has historically acted as a key threshold, with previous tests often followed by sharp volatility spikes and significant bitcoin price swings.
Options market reflects mixed expectations
Options traders on Deribit continue to show demand for downside protection, with BTC and ETH puts remaining more expensive than calls. However, short-term positioning suggests some traders are preparing for a rebound, with the $70,000 bitcoin call becoming the most actively traded contract and the $2,450 ether call leading ETH options activity.
Token Market Updates
Zcash (ZEC) pulled back on Monday, falling 3.68% to $527 after a strong recent rally. The decline likely reflects investors taking profits following its period of outperformance.
AI-focused tokens also faced pressure, with Fetch.ai (FET) dropping 2.94% and Bittensor (TAO) falling 2.58% as last week’s gains began to fade.
PUMP emerged as the strongest performer of the day, surging 20% after increased discussion across social platforms. The rally was supported by comments from crypto influencer Ansem, who shared a bullish outlook and highlighted claims that the company could generate $30 million to $40 million in monthly revenue even during weaker market conditions.
Jupiter (JUP) gained 1.02% to $0.197, supported by improving trading activity as the token continued its gradual recovery from recent losses.
Lighter (LIT) declined another 1.83%, extending its pullback from record highs as investors continued locking in profits after the token’s more than 200% rise between May and early July.
Although overall sentiment remains cautious, CoinMarketCap’s Altcoin Season Index climbed to 55/100, marking its highest level in several months. Still, the Fear and Greed Index reading of 34 indicates that investors remain defensive despite strength in selected altcoins.
