Bitcoin and ether are rebounding after a sharp market-wide selloff, even as derivatives traders continue to scale back risk.
Tuesday’s downturn drove bitcoin to $72,870, its lowest since November 2024, and ether to $2,027, a level last seen in May 2025. BTC has since recovered to around $76,100, while ETH trades near $2,255, showing modest gains since midnight UTC.
Altcoins posted a mixed performance. Privacy-focused tokens climbed, while Solana-based coins such as PUMP and JUP fell 2% and 2.5%, respectively. The broader recovery followed improved market sentiment after the U.S. House of Representatives passed a government funding bill to end a partial shutdown, lifting equity futures and global markets. Precious metals also rebounded, with gold rising above $5,000 and silver climbing nearly 6% to $90.
Derivatives and market positioning
Traders are continuing to de-risk, with total crypto futures open interest falling to $105.9 billion, the lowest since April 2025. Roughly $679 million in positions were liquidated over 24 hours, primarily from bullish bets. Bitcoin’s 30-day implied volatility surged to 53% annualized, the highest since Dec. 1, indicating elevated market anxiety.
Open interest in BTC and ETH futures dropped 0.7% and 2%, respectively, while DOGE and HYPE saw larger outflows. LINK futures rose 2% alongside a positive cumulative volume delta, signaling renewed bullish pressure. TRX, XLM, and ZEC also showed positive short-term volume flows. Options markets continue to favor downside protection, with short-dated BTC and ETH puts trading at a 10–12 volatility premium to calls, while block trades favored put spreads, a bearish strategy.
Token highlights
Exchange tokens HYPE, LIT, and ASTER declined as traders rotated back into privacy coins. HYPE fell 8.5% but remains up roughly 30% year-to-date. Monero (XMR) rebounded 4% to $324.87, halting losses after steep declines since mid-January, while Zcash (ZEC) rose 3.4% to $232.94, recovering from a 60%+ drop since November.
Altcoins generally underperformed bitcoin during the selloff, lifting BTC dominance above 59% from 58.5% at the start of the year. Major tokens SOL, ADA, and XRP are trading at their lowest levels since 2024, having retraced recent bullish rallies—a pattern common in bear markets where low liquidity amplifies altcoin volatility.
