Crypto Market Update: Bitcoin Weakens Despite Powell Boost; Ether Derivatives Hit Record Highs
Bitcoin Retreats as “Sell-the-Rally” Mood Persists
Bitcoin has slipped back to levels seen before Fed Chair Jerome Powell’s dovish comments on Friday, reflecting persistent weakness despite supportive macro signals.
At last check, BTC was trading around $109,645, down from its post-speech high near $117,440. A break below immediate support at $107,500 could trigger deeper losses, according to technical analysts.
The inability to sustain a rally, even after a potential rate-cut signal, underscores bearish sentiment dominating the market.
Rotation into Ether Gathers Steam as BTC Dominance Slips
Market flows point to a growing rotation into Ether, as Bitcoin dominance fell from 60% to 57%. While still above 2021’s sub-50% levels during the altcoin boom, the shift suggests large investors anticipate better relative performance from ETH — particularly if staking-based ETFs gain traction later this year.
According to QCP Capital, whale positioning increasingly favors ETH over BTC.
Mixed Signals in Futures and Options Markets
- BTC futures open interest (OI) rose modestly from 260K to 282K BTC even as price pulled back — signaling a “sell-the-rally” approach.
- In contrast, Ether’s OI moved higher with the rally but has since moderated — seen as a healthy pause rather than a bearish reversal.
Funding rates remain broadly positive across major tokens, indicating a net bullish tilt — with ADA being an exception.
Altcoin futures also saw explosive growth: OI surged $9.2B in a day, pushing total OI to a new high of $61.7B, per Glassnode — underscoring how altcoins are driving leverage and market fragility.
Ether Derivatives Surge to New Records
Institutional interest in Ether derivatives continues to grow:
- ETH options open interest on the CME surpassed $1 billion on Friday — a new all-time high.
- ETH futures OI crossed the 2 million ETH threshold, reinforcing strong demand.
- BTC options OI climbed to $4.85B, the highest since April, though activity remained skewed toward puts — hinting at defensive positioning.
On Deribit, ETH call options are trading at a premium, while BTC options show preference for protective puts heading into year-end.
Hyperliquid Records $3.4B Spot Volume Surge
Decentralized exchange Hyperliquid posted a record-breaking $3.4B in daily spot volume, including $1.5B in BTC trades — making it the second-largest BTC spot venue globally, across centralized and decentralized platforms.
Powered by HyperCore and HyperEVM, the platform offers sub-second finality and high throughput — making it appealing to both high-frequency traders and DeFi builders.
Already a leader in the perpetuals market with 60–70% of DEX market share, Hyperliquid’s growing spot volume cements its role as a foundational liquidity layer in DeFi.
Importantly, trading activity fuels value accrual for HYPE token holders through systematic buybacks funded by the platform’s Assistance Fund, creating a direct link between usage and long-term token value.
