Bitcoin closed down 4.99% in a single day
Bitcoin's recent trend has turned weak. Starting from 8 PM last night, it dropped from the $98,000 level and fell below $93,000 this morning, closing down 4.99% for the largest single-day drop since August 27.
According to data from Coinglass, a total of 169,025 people were liquidated in the cryptocurrency market in the past 24 hours, with a total liquidation amount of $551 million, mainly from long positions.
Compared to Bitcoin, major indices in the US stock market showed an upward trend. The Dow Jones Industrial Average rose 426.16 points, an increase of 0.97%, closing at 44,296.51 points; the S&P 500 index rose 20.63 points, an increase of 0.35%, closing at 5,969.34 points; the Nasdaq Composite Index rose 31.23 points, an increase of 0.16%, closing at 19,003.65 points.
Ethereum's trend is strengthening
In addition, Ethereum, which has lagged behind Bitcoin, has shown relatively strong performance in the past two days, with ETH/BTC rising 6.9% yesterday, marking the largest increase since May 20.
Wintermute analysts pointed out in the report that funds are shifting from Bitcoin to Ethereum, and Ethereum's open interest surged over the weekend, accompanied by rising implied volatility and a significant increase in bullish options demand, indicating that derivatives traders' confidence in the market is increasing.
The shift from Bitcoin to Ethereum is accompanied by a sharp rise in Ethereum's implied volatility, and the bullish options skew has reached a 12-month high, indicating a strong preference for upward exposure. According to analysts at Wintermute, traders are pushing the market upward by actively buying. Wintermute noted in the report
Large trades over the weekend included Ethereum bullish options spread contracts expiring on December 27, with strike prices ranging from $3,600 to $5,000.
On the other hand, analysts at QCP Capital share the same view as Wintermute. The institution pointed out that funds have continuously flowed from Bitcoin to Ethereum and other altcoins in the past 24 hours, and derivative market data indicates that Ethereum's risk reversal is clearly skewed towards short-term bullish options, while Bitcoin's bullish options are mainly concentrated on contracts expiring after December 27, 2024. QCP analysts stated:
The market seems to expect Bitcoin to continue consolidating until December, while the short-term focus has shifted to Ethereum.
(This article is republished with permission from GT Radar)
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