Crypto Markets Extend Pullback Amid Thin Liquidity and Macro Jitters
Bitcoin fell 4% to $86,100 and ether declined 6.7% to below $3,000 as crypto markets extended a pullback amid ongoing macroeconomic jitters. Crypto equities weakened alongside the Nasdaq, which dropped around 2.6% amid concerns over an AI bubble and weak U.S. job data, with U.S. nonfarm payrolls for November due later Tuesday.
Altcoins XRP, SOL, and ADA approached key support levels, showing potential for a short-term bounce, while several tokens entered oversold territory according to the Relative Strength Index (RSI). Liquidity conditions remained thin, with derivatives metrics indicating Volmex BVIV around 50%+, implying an expected 2.6% 24-hour price move. Additionally, exchanges liquidated over $660 million in leveraged futures bets within 24 hours.
Option activity for BTC and ETH suggested persistent downside concerns, as put options, including an $85,000 strike, remained popular. BTC and ETH put options traded at higher prices than calls on Deribit, though institutional call overwriting interest was also noted. Altcoin weakness continued, with ASTER, ONDO, and STRK dropping more than 10% within 24 hours. XRP futures open interest stood at 1.96 billion XRP, and overall open interest for BTC futures remained above 700,000 BTC, signaling bearish positioning across markets.
