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Bitcoin Edges Higher, But Derivatives Still Point to More Pressure

The futures market remains defensive, with high open interest, pricey puts, and $395 million in liquidations weighing on sentiment while altcoins continue to lag.

By Mike Hesp
• 2 min read
Bitcoin Edges Higher, But Derivatives Still Point to More Pressure

Key Takeaways

  • Bitcoin rose 0.3% to $58.700 after dipping to $57.700, its lowest level since September 2024.
  • In 24 hours, $395 million in crypto futures positions were liquidated, mostly longs, while Bitcoin futures open interest climbed to 768.000 BTC.
  • Altcoins stayed weak, although Jupiter gained 11% and Stellar lumens rose 17% despite the broad market weakness.

Bitcoin managed a modest bounce on Wednesday after sliding sharply earlier in the session, but the broader setup still looks cautious. The price climbed 0.3% to $58.700 (€51.500) after briefly touching $57.700 (€50.600) just after midnight UTC, its lowest level since September 2024. Ether also edged higher to $1.580 (€1.390), even as U.S. stock futures traded lower and risk appetite stayed muted.

Derivatives Stay Defensive

The derivatives market has yet to show a real turn in sentiment. Over the past 24 hours, $395 million (€347 million) in crypto futures positions were liquidated, with longs absorbing most of the damage. That fits with the move below $58.000 (€50.900), where a large number of leveraged bets came under pressure.

One notable detail is that Bitcoin futures open interest actually increased to 768.000 BTC from 740.000 BTC a day earlier. That suggests fresh positioning is still entering the market, but it does not necessarily signal a bullish shift. Annual funding rates are sitting near 5%, while the 24-hour cumulative volume delta remains negative, a sign that sellers may still be more aggressive than buyers.

Demand for downside protection is also showing up outside crypto. On Deribit, puts are still more expensive than calls across all expirations, and OTC desk Paradigm saw demand for a Bitcoin put for September with a $50.000 (€43.900) strike. Flows like that suggest traders are still pricing in more downside through the third quarter.

Altcoins Remain Vulnerable

The pressure is hitting the altcoin market especially hard, where thinner liquidity can turn small drops into liquidation cascades much faster. Bitcoin and Ether managed to recover a bit, but most of the market stayed behind, and the CoinMarketCap Altcoin Season Index remained around 48 out of 100.

Even so, a few names stood out. Solana-based DeFi token Jupiter (JUP) gained 11% since midnight UTC, with daily volume rising 55%, while total value locked climbed to more than 20 million SOL from 13.9 million in May. Stellar lumens (XLM) also kept extending its move higher, rising from $0.168 (€0.15) on Sunday to $0.196 (€0.17), a gain of 17%.

The softer tone also matches the broader drop in U.S. demand, where Bitcoin demand has been under pressure for weeks and institutional buyers are still acting more cautiously.

Why This Matters

For European crypto investors, the main takeaway is that the market is not just reacting to spot prices. It is also being shaped by how leveraged positions and options are being priced. Record-high Bitcoin futures open interest, combined with steady demand for puts, suggests traders are still leaning defensive. That makes the next few trading days especially important for anyone watching the relationship between spot, futures, and liquidations.

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