Crypto Decline Continues as Bitcoin, Ether Slide; Oversold Altcoins Offer Limited Relief
Bitcoin and ether extended losses on Monday, tracking weakness in global equities, while some altcoins showed oversold signals that may hint at a near-term bounce.
Bitcoin (BTC$88,535.99) fell about 4% to $86,100, and ether dropped below $3,000 after a 6.7% decline in 24 hours. The sell-off pushed the CoinDesk 20 Index down 4.3%, with all constituent tokens in the red. Traditional markets also weakened, with the Nasdaq Composite falling 2.6% for a second straight day amid AI bubble concerns and ahead of U.S. labor data, including November nonfarm payrolls.
“Consensus forecasts suggest around 50,000 new hires, less than half of September’s 119,000, with downside risks apparent,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
Bearish Signals in Derivatives
Thin liquidity has amplified crypto’s October losses. Key derivatives data point to continued bearish sentiment:
- Over $660 million in leveraged futures were liquidated in 24 hours, mostly long positions.
- BTC futures open interest surpassed 700,000 BTC, indicating increased short positions; XRP futures OI reached 1.96B XRP.
- BTC and ETH put options remain more expensive than calls, signaling persistent downside concern, with the $85K BTC put among the most popular contracts.
- Traders employed strategies such as BTC put spreads and straddles, and ETH put butterflies.
Altcoins Seek a Catalyst
The altcoin market continues to struggle after a two-month corrective phase. ASTER, ONDO, and STRK dropped over 10% in 24 hours. Oversold readings on the relative strength index suggest a possible short-term bounce. XRP, SOL, and ADA are approaching historical support levels that have previously acted as local bottoms, offering potential entry points for investors.
