Crypto markets remain under pressure ahead of key U.S. inflation data due Wednesday, with expectations that May CPI could show inflation pushing above 4%.
Altcoins are broadly in the red. Zcash (ZEC) and Hyperliquid’s HYPE token have each dropped more than 10% over the past 24 hours, while ADA, ONDO, and BCH are down over 4%. The CoinDesk 20 Index also fell about 3% in the same period.
Bitcoin (BTC) has slipped back below $61,500, giving up much of its weekend rebound that briefly lifted prices above $64,000 on some exchanges. The decline also pushes BTC under its 200-week simple moving average, a closely watched long-term indicator.
FxPro analyst Alex Kuptsikevich noted that, historically, sustained trading around this level has often coincided with prolonged bear phases lasting several months.
Derivatives tilt defensive
Crypto futures data points to cautious positioning. Total futures volume rose 1.2% to $193 billion, while open interest declined 1.5% to $102.27 billion. Liquidations jumped 38% to $418 million, with longs accounting for more than $300 million as prices fell toward $61,000.
Bitcoin futures open interest rose to 728,000 BTC despite the price drop, suggesting traders are adding shorts in anticipation of further downside.
Negative funding rates and a negative volume delta reinforce this bearish stance, showing aggressive selling into bids rather than passive accumulation.
Solana futures open interest climbed to 69.58 million tokens, near recent highs, while funding and flow metrics remain negative—consistent with broader market weakness.
Across major assets including ETH and XRP, funding rates remain negative, with XMR the only notable exception showing slight strength.
Bitcoin’s 30-day implied volatility rose to 51.21% from 45.8%, signaling increased uncertainty ahead of CPI. Ether volatility has also moved higher.
On Deribit, short-dated BTC and ETH puts continue to trade at a premium over calls, reflecting strong demand for downside protection. One-week implied volatility remains elevated relative to realized volatility, favoring option buyers.
A July options structure suggests positioning is tilted toward range-bound expectations rather than a clear directional breakout.
Token distortions and selective strength
Uniswap V4’s total value locked appeared to surge more than 350% in a single day due to apparent inflows on BNB Chain. However, the spike was later traced to distorted data caused by the hacked Humanity Protocol H token, which was minted in unlimited supply and artificially inflated liquidity figures.
Separately, Santiment said crypto markets are approaching a historically attractive buy zone based on 30-day MVRV readings. Recent buyers are underwater across major assets: bitcoin (-10%), ether (-12%), XRP (-8%), and cardano (-18%). The firm labels most conditions as “fair buy,” with cardano marked as a “strong buy.”
In token-specific news, MORPHO rose 12% after its onchain lending protocol raised $175 million in a major funding round led by Paradigm, a16z crypto, and Ribbit Capital, with participation from Apollo and VanEck. The raise valued the protocol at up to $2 billion, though gains later partially faded.
