Bitcoin Price Shows Modest Gains Amid Market Shifts and Exploit Impact
Bitcoin (BTC) price has risen against the US dollar, trading within a tight range of $86,000 to $90,000, representing an approximate 1.2% increase since midnight UTC. Despite this gain, the BTC/gold ratio has fallen to 20.18, marking its lowest level since January 1, 2024. This decrease highlights gold's role as a safe-haven asset in the current market conditions.
Meanwhile, funding rates for major tokens including Binance Coin (BNB), XRP, Solana (SOL), TRON (TRX), and Dogecoin (DOGE) have turned negative. This shift indicates a growing accumulation of short positions in futures markets for these assets. Correspondingly, open interest in SOL, TRX, and DOGE has risen, supporting the short-position buildup trend.
Yearn Finance's token (YFI) experienced a nearly 6% decline following a $300,000 exploit targeting a legacy iEarn contract. The Yearn team confirmed that their current vaults and contracts were not impacted. However, the total value locked (TVL) in Yearn decreased by over $50 million to roughly $560 million since the initial exploit.
Derivatives activity reveals a bias toward BTC and ETH put options, with risk reversals indicating caution among traders. The BVIV index hovers around 50%, and the MOVE index, currently at 62.73, is at its lowest level since October, suggesting reduced near-term volatility.
Additionally, a lower-than-expected US inflation print might increase expectations for rate cuts, potentially encouraging more risk-taking. This development could ease Bitcoin's recent underperformance compared to gold in the near future.
