The cryptocurrency market showed signs of stabilization on Monday following a turbulent weekend during which over $500 billion in value was wiped out, leading to a significant contraction in open interest across derivative markets.
Bitcoin (BTC) staged a modest recovery, rising approximately 1.4% to trade near $114,431. Meanwhile, Ether (ETH) outpaced Bitcoin’s gains, climbing 2.5% to around $4,129. Among altcoins, Synthetix (SNX) notably surged over 120%, driven by anticipation surrounding its upcoming trading contest that pits it in competition against the decentralized trading platform HyperLiquid.
However, the rebound was not universal. Tokens such as Plasma (XPL) and Aster (ASTER) did not benefit from the market’s recovery, registering declines of 4.2% and 2.5% respectively.
Derivatives Market Insights
After experiencing sharp volatility, the Bitcoin futures market has begun to regain footing. Open interest, which dropped from $33 billion to $23 billion over the weekend, has rebounded slightly to about $26 billion. The 3-month annualized basis, an indicator of market premium, recovered to a range of 6-7% after falling to 4-5%, signaling renewed bullish sentiment.
Funding rates remain inconsistent across platforms: Bybit and HyperLiquid show funding near 10%, indicative of long trader dominance, while Binance displays negative funding, reflecting divergent trader positioning.
Options market data further underscores this shift. The 24-hour Put/Call Volume ratio has tilted in favor of call options, now exceeding 56%. Additionally, the 1-week 25 Delta Skew has increased to 2.5% after a period of relative flatness, suggesting growing demand for upside protection among investors.
Liquidations and Market Activity
According to Coinglass, approximately $620 million worth of positions were liquidated within the past 24 hours. Long position liquidations accounted for 34%, with shorts comprising the remaining 66%. Ether led in liquidation volume with $218 million, followed by Bitcoin at $124 million, and Solana (SOL) with $43 million.
Binance’s liquidation heatmap highlights $116,620 as a critical level to watch, potentially serving as a pivot point should prices continue to rise.
Market Capitalization and Volume Trends
Data from CoinMarketCap reveals the total crypto market capitalization increased by about 5.7% in the last 24 hours, accompanied by a 26.8% surge in trading volume. This volume uptick points to traders re-entering the market after being forced out over the weekend’s sharp downturn.
Derivative liquidations totaled $19 billion during the weekend crash, predominantly stemming from long positions. However, the recent 24-hour figures indicate a reversal, with $626 million liquidated, $420 million of which were short positions, highlighting a potential shift in market sentiment.
Bitcoin’s dominance remains elevated at nearly 58.5%, a slight decrease from recent highs, suggesting that while large-cap cryptocurrencies retain investor confidence, many altcoins may continue to lag behind in the short term.
Monday’s standout performer, Synthetix (SNX), saw a dramatic price upswing ahead of a new competitive event, setting the stage for ongoing rivalry with HyperLiquid in decentralized perpetual contract trading.
