Bitcoin slipped from its one-month high as WTI crude oil climbed above $85 per barrel for the first time since June, bringing inflation concerns back into focus and driving investors toward defensive assets such as gold, silver, and Bitcoin while reducing demand for altcoins.
The crypto market moved slightly lower on Wednesday, with Bitcoin falling around 0.9% from midnight UTC to trade near $65,900. Ether also declined, losing about 0.5% to around $1,920.
The decline came after Bitcoin reached its strongest level in more than a month on Tuesday, with traders taking profits following the recent upward move.
The biggest macro factor affecting sentiment was the sharp rise in oil prices. WTI crude, the U.S. benchmark, pushed above $85 per barrel for the first time since June 12 as tensions related to the Iran conflict escalated. The move revived inflation worries that have pressured risk assets throughout the year.
Equity markets also weakened, with Nasdaq 100 and S&P 500 futures moving lower. At the same time, investors increased exposure to safe-haven assets, lifting gold by 0.95% to $4,118 and silver by 1.2%.
The search for safety was also visible in digital assets. Bitcoin’s market dominance climbed to 59% as traders shifted funds away from altcoins and stablecoins into the largest cryptocurrency.
Derivatives Market Trends
Market activity slows:
Crypto trading volume dropped 12% over the last 24 hours to $150 billion, while total open interest remained steady near $116 billion. With liquidations limited to roughly $165 million, the market appears to be pausing after recent volatility.
Long positions lose momentum:
The 24-hour long-to-short ratio narrowed to 50.59% long and 49.41% short, showing a more balanced market compared with the previous session. While futures contracts always have equal numbers of buyers and sellers, this ratio reflects whether accounts are positioned net long or net short. The tighter reading suggests the recent bullish bias is weakening.
HYPE traders increase bearish bets:
Hyperliquid’s HYPE token dropped more than 6% over 24 hours, ranking among the weakest major crypto performers. The decline came as futures open interest climbed to 42.8 million HYPE, the highest level since June 4. Negative perpetual funding rates and a declining cumulative volume delta (CVD) point to increasing short exposure as traders anticipate additional downside.
XLM selling pressure continues:
Stellar’s XLM futures open interest increased for a third consecutive day, reaching 1 billion tokens. A negative CVD indicates sellers are dominating market orders, helping explain why the token has struggled to remain above the $0.19 level.
Major assets show limited repositioning:
Open interest for Bitcoin and Ether remained largely unchanged over the past day, suggesting traders have not significantly adjusted their exposure despite the decline from Tuesday’s highs.
Sellers remain in control across the market:
Most leading cryptocurrencies, excluding XMR, XAUT, and HBAR, recorded negative 24-hour CVD readings, indicating stronger selling activity than buying pressure.
Volatility expectations rise:
Bitcoin’s 30-day implied volatility index (BVIV) increased to 40% from 37.5%, showing that traders are paying more for protection against potential price swings. Ether’s volatility gauge has also moved higher.
Options traders continue seeking upside:
Bitcoin call options remained the most active contracts on Deribit, with strong demand around the $70,000 and $72,000 strike levels. The activity suggests some traders continue to expect further gains despite the short-term pullback. Ether options also showed bullish interest, with the $3,000 strike becoming the most traded contract.
Token Market Update
Dash (DASH) was the biggest decliner on Wednesday, falling 4.1% to $33.44. Hyperliquid’s HYPE followed with a 3.42% drop to $58.79 as the token continued retreating from recent highs.
Midnight (NIGHT) was the strongest performer over the past 24 hours, jumping 19% after recovering from Monday’s sell-off. Cardano founder Charles Hoskinson highlighted the project on X, describing it as an “incredible ecosystem” backed by strong technology.
Ether.fi (ETHFI) and Ethena (ENA) outperformed the broader market, rising 2.63% and 1.27%, respectively, as DeFi-related tokens continued showing relative strength.
Ondo (ONDO) remained one of the strongest weekly performers, gaining 26% over seven days to around $0.40 as investor interest in tokenized real-world assets continued despite a weaker macro backdrop.
CoinMarketCap’s Altcoin Season Index stood at 50/100, slightly below the previous week’s high, reflecting renewed investor preference for Bitcoin during periods of market uncertainty.
