Bitcoin (BTC) dropped below $63,000 on June 18, declining about 1.2% from the previous day, while Ethereum (ETH) fell 1.74%. The total cryptocurrency market capitalization shrank 1.86% to $2.16 trillion, reflecting broad risk-off sentiment amid global macro uncertainties.
The sell-off was not limited to crypto. Nasdaq 100 futures slid 1.91%, S&P 500 futures lost 0.96%, and Japan's Nikkei 225 plunged 4%. Safe-haven assets gained, with the dollar index rising to 100.75 and gold climbing 0.61% to reclaim $4,000 per ounce.
Derivatives market signals short-term bearishness
The derivatives market showed clear bearish signals. The long-to-short ratio in futures fell to 0.94, the lowest since early June, indicating aggressive selling at market orders. However, trading volume dipped 4% to $163 billion, and open interest (OI) remained stable around $111 billion, suggesting an orderly correction rather than panic.
Among major assets, ETH, XRP, and SOL exhibited similar patterns. Hyperliquid's HYPE stood out, with spot prices dropping 8% while OI rose 2%, confirming new short positions. This points to strong short-term bearish pressure, though no large-scale liquidations were observed.
Options market calm, altcoins mixed
Implied volatility for BTC and ETH options stayed near recent lows, indicating limited hedging demand. A large straddle strategy targeting July 24 emerged for ETH, while put options were active. For BTC, the $62,500 put was most traded, reflecting short-term downside risks.
Altcoins were mostly lower, but privacy coins ZEC and DASH gained 1.56% and 0.78%, respectively. AI-related tokens FET and TAO also edged up. The Altcoin Season Index rebounded to 53, hinting at relative strength for some coins against Bitcoin.
Oversold conditions may support a rebound
The average RSI for major cryptocurrencies fell to 42.23, nearing oversold territory similar to levels that triggered a rally in July. Analysts note that while the market is in a risk-averse phase driven by macro and geopolitical factors, the absence of derivative market overheating leaves room for a short-term bounce.