Bitcoin Stumbles, Altcoins Cry: Crypto Traders Left Wondering What’s Next

by

Markets

What to know:

  • BTC is currently lounging around $90,350 after valiantly defending the $88,200 support zone. However, it’s still stuck under the heavy foot of the $94,500 resistance level, like a cat that refuses to leave the house.
  • Implied volatility? Yeah, it’s dropped to the lowest since November, much like your enthusiasm for studying the fine details of cryptocurrency. Meanwhile, ETH/BTC IV spreads are widening, and risk reversals are about as optimistic as your 10th-grade math teacher.
  • Low liquidity dragged tokens like ETHFI, FET, ADA, and PUMP down by more than 8%. Meanwhile, privacy-focused XMR flexed with gains while the broader altcoin season index took a nosedive to a disappointing 19/100.

The crypto market did what we’ve come to expect: it fell back down to the lower side of its range after the Federal Reserve decided to reduce interest rates by a mere 25 basis points. Big whoop, right? Traders had already priced in this snoozer of an announcement, so they promptly unwinded their long exposure.

Bitcoin now finds itself cautiously lingering above $88,200, trading at $90,350. It’s in search of a catalyst to push it above this week’s stiff resistance at $94,500. Somebody throw it a rope.

The altcoin market, on the other hand, remains as weak as a week-old baguette. Several tokens have lost ground against their bitcoin pairs. It’s like watching a slow-motion car crash, but with more volatility and fewer airbags.

Derivatives positioning

  • BTC’s volatility expectations are dropping like a rock in water, now that the Fed decision is out of the way. As of writing, the 30-day implied volatility, represented by the BVIV index, is a calm 46.95%, the lowest since Nov. 13. Still high enough to make you question your life choices, though.
  • The spread between ether and bitcoin’s 30-day IVs has risen, suggesting that market eyes are once again fixed on Ethereum‘s native token. Hold your applause.
  • The VIX is also back to normal after its November hissy fit. Because why not, right?
  • On Deribit, BTC and ETH risk reversals remain negative across tenors, which means traders are still nervously clutching their put options like they’re the last slice of pizza at a party.
  • Block flows show a love affair between BTC risk reversals and call calendar spreads. ETH, meanwhile, is getting cozy with risk reversals and straddles. Cryptos, so much drama.
  • In the futures market, ADA’s open interest has dropped 10% in the past 24 hours, leading the decline in open interest across most major tokens. It’s like watching people scramble for the exit during a fire drill.
  • Funding rates for many tokens, excluding BTC and ETH, have flipped negative, signaling that traders are chasing bearish short positions. It’s almost like they’re begging for the markets to crash. Almost.

Token talk

  • The altcoin market continued its downward slide on Thursday, retreating back into the abyss as ETHFI, FET, ADA, and PUMP all lost more than 8% in just 24 hours. Who said crypto wasn’t exciting?
  • This sell-off happened right alongside Bitcoin and Ether’s respective losses, but the percentage drop in altcoins was much sharper. Apparently, liquidating a few altcoins here and there is the latest trend, post-October’s liquidation disaster.
  • ETHFI’s market depth is at a comically shallow 2%, with only about $500,000 on either side of the order book. That’s nothing-seriously, a sneeze could shift the price by 2%!
  • Not all tokens are on the struggle bus, though. Monero, in a rare twist, actually rose by more than 2%, proving that sometimes, privacy coins are still living their best life.
  • CoinMarketCap’s “altcoin season” index is currently at a pitiful 19/100, miles away from September’s high of 77/100. Bitcoin and Ether are still the popular kids in town, leaving the altcoins in the dust like last year’s trends.

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2025-12-11 15:18