Bitcoin has surged above $121,000 after hitting overnight lows below $120,000, with significant gains in privacy cryptocurrencies ZEC and DASH.
Decentralized exchange traders maintain bullish positions, favoring out-of-the-money call options for BTC and ETH. Most market analysts retain positive outlooks.
"The market is consolidating at high levels - calm, liquid, and quietly optimistic. Institutional capital flows continue driving this phase, with ETFs serving as the bridge between traditional finance and digital assets. Despite short-term volatility, macro liquidity conditions, corporate adoption, and structural inflows all support continued growth," stated Timothy Misir, BRN Research Director.
Derivatives Market Analysis
By Omkar Godbole
- Coinglass data indicates numerous BTC perpetual short positions face liquidation risk above $121,600. Sustained price movement beyond this level could trigger a short squeeze, potentially driving prices toward record highs.
- Glassnode reports the market is undergoing leverage normalization, with volatility eliminating excess positioning. However, overall BTC futures market exposure remains high, with open interest approaching the record 755K BTC.
- BNB, XRP, ADA, and TRX have experienced futures open interest declines over 24 hours, signaling capital outflows. BTC OI increased 1%, while ETH rose just 0.4%.
- XMR markets show overheating signs with annualized funding rates near 60%, indicating excessive bullish demand. Major tokens including BTC and ETH maintain positive but normal funding rates.
- On Derive exchange, October 31 expiry options show concentrated open interest in $128K and $145K calls, reflecting bullish sentiment. ETH options activity mirrors this pattern with $5K and $6K call concentration.
- Deribit data shows mildly negative call-put skews for BTC and ETH across timeframes, indicating protective put preference. Paradigm block flows featured ETH puts and straddles.
Memecoin Market Update
By Oliver Knight
- The recent Chinese memecoin frenzy involving PancakeSwap V2 tokens like GIGGLE, 四, and 哈基米 has dramatically collapsed.
- Multiple assets lost over 95% value within 24 hours, erasing speculative gains driven by social media hype and momentum.
- The crash occurred alongside broader memecoin market declines, described by Binance founder Changpeng "CZ" Zhao as a "blood bath" fueled by FUD and false listing rumors.
- The downturn follows Binance's "Meme Rush" platform launch intended to provide structured token pathways before exchange trading.
- Similar to Solana memecoin declines following TRUMP and MELANIA launches in February, BNB Chain memecoins appear following identical failure patterns.
- PancakeSwap maintains elevated $18 billion 24-hour trading volume despite new token interest, though liquidity remains constrained with WBNB at $35 million versus $1.6 billion fully diluted value.