Bitcoin rebounds from $86,000 as downtrend continues; risk-off lifts gold and silver
Bitcoin (BTC $87,754) bounced from a one-month low of $86,000 on Sunday, coinciding with the reopening of CME futures at 23:00 UTC. The cryptocurrency rose more than 2% over the next nine hours before losing momentum near $88,250.
Despite the recovery, bitcoin remains in a sustained downtrend, characterized by lower highs and lower lows since October, reflecting early signs of a bear-market correction. Sunday’s decline was driven by risk-off sentiment following a volatile week, including U.S. President Donald Trump’s speeches in Davos on Greenland, tariffs, and global geopolitical tensions.
Gold and silver surged to record highs in the same risk-off environment, reinforcing bitcoin’s status as a risk asset closely linked to equities rather than a safe haven.
Derivatives highlight short-term stress
BTC futures open interest remained stable at $22.6 billion despite the drop, signaling a pause in deleveraging. Funding rates hovered near 5% annualized, with OKX diverging at -3.8%, suggesting localized bearish bets. The three-month annualized basis on Binance and Deribit rose above 5%, indicating gradual institutional participation amid consolidation.
Options markets showed strong conviction, with a 15% one-week 25-delta skew and 58% of 24-hour volume in calls. The implied volatility term structure shifted to backwardation, with front-end volatility spiking to 41.5% and trending toward 47% for late 2026. Coinglass reported $744 million in 24-hour liquidations, led by ETH ($273M), BTC ($207M), and SOL ($63M), with $88,370 flagged as a key liquidation level on Binance.
Altcoins rebound
Altcoins outperformed overnight. Ether (ETH $2,929) and XRP ($1.89) rose 2.8%, while Zcash (ZEC $381) and Monero (XMR $467) gained 6% and 3%, respectively. Metaverse tokens led the gains, with Axie Infinity (AXS) up 23% and the CoinDesk Metaverse Select Index (MTVS) rising 6.9%, contributing to a 34.4% year-to-date rally.
The CoinDesk 20 (CD20) Index is down 0.52% year-to-date, while the altcoin-heavy CoinDesk 80 (CD80) is up 2.5%, highlighting relative strength in altcoins. RIVER, the token of its stablecoin protocol, surged over 2,100% in 30 days, including a 34% gain in the past 24 hours. The “altcoin season” indicator stands at 28/100, above last month’s 16/100 but below September’s peak of 76/100.
Since October’s $19 billion liquidation cascade, thin liquidity and shallow order books have amplified altcoin volatility, producing sharp selloffs and dramatic recoveries, as seen on Sunday.
