Market News

(Bloomberg) -- Bitcoin resumed its slide lower as speculative traders returned their focus to surging metals, after a brief rebound from a 10-month low.

The original cryptocurrency fell below $76,000 amid a resumption of the bearish sentiment that nearly pushed it to the lowest level since US President Donald Trump returned to the White House just over a year ago.

While crypto venues like Hyperliquid still see most of their volume tied to native tokens and memecoins, but they’ve also become unlikely barometers of this broader macro shift. The funding rate for sliver perpetual futures on Hyperliquid remains positive with over $1 billion in trading volume over the last 24 hours, which is about three times as much as the second most popular non-crypto perps underpinned by gold prices.

The crypto derivatives market is pointing to further slump with no significant positive catalysts in sight. The open interest, the number of outstanding contracts, for crypto futures contracts has collapsed over the weekend, according to data from CME and Coinglass. The funding rate for perpetual futures, which makes up most of the trading volume in digital assets, has turned negative, meaning there is more demand for bearish bets.

Put options — contracts that protect against downside risk — have eased, but strike price concentrations show the market has not shaken off its jitters. The highest concentrations of put options indicate buy-side support at $75,000, making it a key support level, according to Deribit data. The token dropped as low as $74,541 on Monday before recovering. The next key support level is $70,000.

“The BTC options market is showing signs of stabilizing as extreme downside fear begins to mean-revert,” said Sean McNulty, APAC derivatives trading lead at FalconX. “However, a weekly close below $75,000 would invalidate the current bounce higher, and potentially open a vacuum toward that $69,000 to $70,000 zone.”

Net Bitcoin exchange-traded fund outflows totaled roughly $1.1 billion this month, Wintermute said. The funds have seen some of the largest single-day outflows this month as demand in the spot market wans.

Bitcoin’s implied volatility index remained elevated at around 48.8, similar to Monday’s level, according to charting platform TradingView. “Turnaround Tuesday seems to be in effect,” said Jeff Anderson, head of Asia at STS Digital. “Markets got over their skis selling risk assets, and now that everyone has calmed down a bit, things rally off the lows.”

--With assistance from Sidhartha Shukla.