Cryptocurrency markets demonstrated significant recovery on Monday following a substantial $500 billion market downturn over the weekend that triggered $10 billion in open interest reductions.
Bitcoin (BTC) recorded a 1.4% increase while Ethereum (ETH) showed stronger performance with 2.5% gains. Synthetix (SNX) emerged as the standout performer with an extraordinary 120% surge as traders anticipate competitive dynamics between the decentralized trading platform and HyperLiquid.
Not all assets participated in the recovery, with Plasma (XPL) and Aster (ASTER) declining 4.2% and 2.5% respectively.
Derivatives Market Analysis
- BTC futures markets have stabilized following recent volatility. Open interest, which plummeted from $33 billion to $23 billion during the weekend, has now recovered to approximately $26 billion. The 3-month annualized basis has returned to the 6-7% range after dropping to 4-5%, signaling restored bullish sentiment. However, funding rates show divergence with Bybit and Hyperliquid around 10% while Binance maintains negative rates.
- BTC options markets indicate renewed bullish positioning. The 24-hour Put/Call Volume ratio now favors calls at over 56%. Additionally, the 1-week 25 Delta Skew has increased to 2.5% after previous stagnation.
- Market metrics suggest growing demand for bullish exposure and upside protection, marking a departure from recent cautious neutrality.
- Coinglass data reveals $620 million in 24-hour liquidations with a 34-66 distribution between long and short positions. ETH ($218 million), BTC ($124 million), and SOL ($43 million) led nominal liquidations. Binance liquidation heatmap identifies $116,620 as a critical level to monitor during price increases.
Market Overview
By Oliver Knight
- Crypto markets initiated Monday with a rebound following aggressive weekend leverage reductions. CoinMarketCap data indicates total market capitalization increased approximately 5.7% over 24 hours with trading volume rising 26.8%, suggesting liquidated positions are being repurchased.
- Weekend derivatives liquidations totaled $19 billion, predominantly affecting long positions. However, the past 24 hours show $626 billion liquidated with $420 billion from short positions, indicating sentiment reversal according to CoinGlass.
- The recovery remains cautious with Bitcoin dominance elevated at 58.45%, though slightly reduced from recent peaks, suggesting altcoins may continue trailing as capital flows toward established large-cap assets.
- Synthetix (SNX) dominated Monday's recovery with over 120% growth preceding a crypto trading competition that could initiate "perpetual wars" with HyperLiquid.