Bitcoin and ether edged lower on Tuesday, drifting toward key support levels, while DeFi tokens led losses across the broader crypto market. A few outliers, including XLM and LIT, managed to post gains despite the overall weakness.
Bitcoin (BTC) fell 1.5% after failing to sustain a move above $60,000 on Monday, and is now trading near $59,250, approaching weekend lows around $58,800. Ether (ETH) dropped 1.73% since midnight UTC to roughly $1,580 after once again failing to clear resistance near $1,640.
Both assets are now testing major multi-year support zones. Ether has previously rebounded from similar levels in October 2023 and April 2025, while bitcoin is hovering near its lowest levels since late 2024. A break below these levels could leave the market without a clear downside floor.
Altcoins saw sharper declines, particularly in the DeFi sector, where tokens such as Ethena (ENA), Jupiter (JUP), and Ether.fi (ETHFI) fell between 3.3% and 7.5% as risk appetite continued to deteriorate.
The downturn contrasts with traditional markets, where U.S. equity futures remained steady, with the S&P 500 and Nasdaq 100 each rising around 0.03%. The U.S. Dollar Index (DXY) also gained 0.25%.
In derivatives markets, Hyperliquid’s HYPE stood out, rising more than 4.3% over the past 24 hours and remaining the only major token in positive territory. The move appears driven by spot demand, while futures open interest has held steady at around 40 million tokens since June 22. Positioning remains slightly bullish, with funding rates near 10%, indicating perpetual futures are trading above spot prices.
Dogecoin (DOGE) recorded the largest increase in open interest among major tokens, climbing to 16 billion tokens—its highest since the October 10 crash and up from 13 billion the previous day. However, the data points to bearish positioning, with negative funding rates and a negative 24-hour OI-adjusted cumulative volume delta, signaling aggressive selling pressure.
Elsewhere, bitcoin, ether, and XRP futures markets remain largely unchanged, while Solana (SOL) continues to show elevated open interest near record highs, suggesting potential volatility ahead.
Volatility indicators remain subdued. Bitcoin’s 30-day implied volatility (BVIV) dropped 11% to 44% and has stabilized at that level, while Ether’s EVIV reflects a similar trend.
On Deribit, bitcoin put options continue to trade at a premium of over 10% relative to calls across maturities, highlighting persistent demand for downside protection. Ether options show a similar short-term bias, with weekly puts priced higher than calls, while longer-dated contracts appear more balanced.
Options flow included a bitcoin short straddle, a strategy typically used in anticipation of low volatility and range-bound trading.
Across the broader market, DeFi tokens struggled, while AI-related tokens such as FET, TAO, and RENDER also declined. Privacy coins ZEC and XMR were under pressure as well.
Even Hyperliquid (HYPE), despite recent outperformance, slipped about 2.2% to $65.3, suggesting consolidation following its prior rally rather than a deeper correction.
On the upside, Stellar Lumens (XLM) gained after news that DTCC plans to connect its tokenized securities platform to the Stellar network by 2027, sustaining bullish sentiment from its rally in May.
Lighter (LIT) also outperformed, benefiting from growing interest in decentralized perpetual exchanges, rising 23% over the past week with strong double-digit gains in the last 24 hours.
