Crypto Rebound Leaves Bearish Derivatives Signals Intact
Bitcoin and ether recovered from midweek lows, helped by a rebound in U.S. equity futures, but derivatives data continued to point to fragile market sentiment. Nearly $1 billion in crypto futures positions were liquidated over 24 hours as traders were hit by sharp two-way volatility.
What happened?
Bitcoin and ether recovered from midweek lows, helped by a rebound in U.S. equity futures, but derivatives data continued to point to fragile market sentiment. Nearly $1 billion in crypto futures positions were liquidated over 24 hours as traders were hit by sharp two-way volatility.
Why it matters
Crypto prices steadied on Thursday after a sharp midweek sell-off, with bitcoin climbing back above $61,000 after briefly falling below $60,000 on Wednesday, its lowest level since October 2024. Ether also rebounded, rising after a drop to around $1,550, while the broader market attempted to recover from a volatile session.
Crypto prices steadied on Thursday after a sharp midweek sell-off, with bitcoin climbing back above $61,000 after briefly falling below $60,000 on Wednesday, its lowest level since October 2024. Ether also rebounded, rising after a drop to around $1,550, while the broader market attempted to recover from a volatile session.
The move matters because the bounce did not erase signs of stress in derivatives markets. CoinDesk reported that nearly $1 billion in crypto futures positions were liquidated over 24 hours, showing how quickly leverage was flushed out as prices swung in both directions. The rebound appeared partly linked to stronger U.S. equity futures, but market structure remained cautious.
Bitcoin futures open interest rose to 763,000 BTC, the highest level since June 4, even as funding rates turned negative. That combination suggests fresh capital entered the market during the sell-off, but positioning was not clearly bullish, with traders paying more for downside exposure.
Other indicators also pointed to pressure from sellers. The 24-hour cumulative volume delta, adjusted for open interest, was negative across most major tokens for a third straight day, indicating that bears were leading activity by selling aggressively at market prices. Options markets showed similar caution, with bitcoin’s one-week put-call skew reflecting a large premium for downside protection.
Altcoins saw an uneven rebound after Wednesday’s losses. Jupiter dropped more than 12% in six hours before bouncing more than 18%, while DeFi tokens including AAVE and ETHFI posted gains. AI-linked tokens such as RENDER and NEAR lagged, and solana remained under pressure after touching $64, completing a 75% decline from its September peak.