Bitcoin Falls to $78,000 as Memecoins Slide Hard
The drop is hitting memecoins and small caps the hardest, while derivatives traders are looking for more protection. U.S. inflation data later this week could push sentiment further.
Key Takeaways
- Bitcoin is trading around $78,000, down 2% in 24 hours and 5.1% below last week’s peak of $82,284.
- The broader crypto market turned red, with memecoins down 10% and the CoinDesk 80 down 5.1%.
- Derivatives show caution, while put options on Bitcoin and Ether are the most actively traded.
Bitcoin is holding around $78,000 (€66,900), but it is still down 2% over the past 24 hours, wiping out Wednesday’s gains. The biggest crypto is now also 5.1% below the $82,284 (€70,600) peak reached last week. The broader crypto market is red, with memecoins and small caps taking the hardest hit.
Broad Red Picture
According to CoinDesk Indices, the CoinDesk 100 fell 3.7% over 24 hours, while only five of the 100 components were higher. The damage was mostly in the speculative corner: the CoinDesk Memecoin Index lost 10% and the CoinDesk 80 fell 5.1%, compared with a 2.3% drop for the CoinDesk 5.
Ether also struggled. The coin was trading around $2,470 (€2,120), slightly higher on the day, but still down 1.9% over 24 hours. That made Ether the worst-performing major crypto in this period, with a decline of 5.1%.
Since midnight, trading has been calmer. At that point, 86 of the 100 CoinDesk components were still lower, but the index was only down 0.54%. That suggests most of the selloff happened overnight.
Derivatives Stay Cautious
The tone in the derivatives market is still cautious too. The taker long/short volume ratio in crypto futures has turned bearish again, while total open interest fell 2% to $139 billion (€119 billion) and volume rose 5%. That points to more trading and limited capital outflows.
Bitcoin is showing a notable mix: the price fell 1.5% in 24 hours, while open interest actually rose slightly according to Velo. That is often seen as a sign that traders are building short positions. The 24-hour cumulative volume delta is negative, which means sellers are using market orders more aggressively.
Why This Moment Feels Extra Sensitive
The crypto market is also getting little help from outside forces right now. U.S. futures are slightly higher or flat, gold is barely moving, and the dollar index is unchanged. Later today, U.S. producer prices for August are due, followed by CPI on Friday. That could matter for European crypto readers, since data like this often feeds into the broader risk mood in the market.
Demand for protection is still showing up in derivatives trading. On Deribit, the most traded BTC option right now is the $70,000 (€60,100) put expiring on September 18, followed by the $76,000 (€65,200) put expiring on September 11. For Ether, the $2,400 (€2,060) put expiring on September 11 is at the top of the list.
The broader market structure also remains fragile. Whales selling and short positions being built make it hard for Bitcoin to quickly move back toward its recent peak.
