Here’s a tighter, more streamlined rewrite with a cleaner market-report tone:
Bitcoin fell 2.5% to around $62,300, while ether dropped more than 4% as roughly $717 million in liquidations deepened losses across altcoins.
The crypto market declined on Tuesday, with Bitcoin (BTC) sliding to about $62,300 after losing 2.5% since midnight UTC. Ether (ETH) fell more than 4% to near $1,650, extending weakness across major tokens.
The move followed continued pressure in tech stocks, with Nasdaq 100 futures down around 2.5%, underscoring broader risk-off sentiment.
TickMill strategist Patrick Munnelly attributed the weakness to profit-taking and concerns over rising bond yields weighing on equities.
Altcoins underperformed, with tokens such as Ethena (ENA) and Hyperliquid (HYPE) down 5%–6%, while $717 million in liquidations accelerated downside pressure.
The U.S. Dollar Index (DXY) strengthened to 101.15, its highest level since May 2025.
Derivatives point to rising bearish positioning
Open interest in SpaceX perpetual futures on Hyperliquid, Binance and other venues rose about 10% despite a roughly 15% price decline, signaling increased short exposure. The contracts have now become the sixth-largest globally, ahead of several major crypto assets including ZEC.
XRP futures open interest climbed to 2.38 billion tokens, near eight-month highs, even as prices fell. However, negative OI-adjusted cumulative volume delta (CVD) for a second straight day suggests aggressive selling dominated by market takers.
Bitcoin futures open interest eased to 720,000 BTC from 742,000 BTC last week, down from a recent peak near 800,000 BTC. Ether futures OI rebounded slightly to 14.13 million ETH but remains below late-May highs.
Across most top tokens, negative CVD readings indicate broad seller dominance.
Volatility measures also moved higher, with Bitcoin’s 30-day implied volatility index rising from around 40%, typically reflecting increased hedging demand and bearish momentum.
In options markets, positioning remains skewed toward long calls ahead of Friday’s expiry, though many of those positions are now underwater. Put options are increasingly profitable, highlighting demand for downside protection. Put-call skews continue to favor hedges, reflecting cautious sentiment.
Token moves
Privacy coins held up relatively well, with Dash (DASH) down 0.2% and Monero (XMR) slipping 0.7%.
Zcash (ZEC) fell 4.2%, tracking broader altcoin weakness following recent AI-related concerns.
AI-linked tokens including Fetch.ai (FET), Render (RENDER), and Bittensor (TAO) declined 3%–5% as negative tech sentiment spilled into crypto.
The average crypto RSI near 39 suggests oversold conditions, leaving room for a short-term bounce or relief rally.
