Bitcoin Steadies While Altcoin Momentum Fades; MON Surges
The cryptocurrency market is facing significant challenges, marked by “extreme fear” following recent sell-offs. Despite this, Bitcoin (BTC) has remained relatively stable. On Wednesday, it was trading at approximately $86,600. Ethereum (ETH) also saw a modest increase, reaching around $2,900.
Market Overview
The top 20 cryptocurrencies showed little movement, with the largest fluctuation being just 3% over 24 hours. This contrasts sharply with recent volatility, which saw double-digit losses as investors reacted to thinning liquidity.
Bitcoin vs. Altcoins
- CoinDesk 10 Capped Index (excluding Bitcoin) has dropped by 36.8% year-to-date.
- Index including Bitcoin has decreased by 29.7%.
This reflects a continued investor preference for Bitcoin due to its perceived safety and stability compared to altcoins, which tend to experience brief periods of momentum.
Derivatives Positioning
Bitcoin’s 30-day implied volatility index has returned to a more stable state. The index had previously surged from 53% to 65%, but is now stabilizing as market concerns ease. A similar trend is observable in Ethereum’s volatility index.
Options Market Insights
Recent trading on Deribit included a notable transaction involving a $220,000 call and a $40,000 put, both expiring on June 26, 2026. This indicates a potential strategy aimed at capitalizing on an expected volatility spike in the coming months.
Open Interest Trends
- Bitcoin’s open interest has remained flat, currently at 132.4K BTC, marking its lowest since April.
- Ethereum’s open interest has decreased to nearly 2 million ETH, the lowest level in over two months.
Monad’s Surge amid Market Calm
Amidst this struggling altcoin market, Monad (MON) has emerged as a notable performer. After launching on the South Korean exchange Upbit, MON doubled from its debut price of $0.023, reaching significant daily trading volumes of approximately $370 million.
In contrast, trading volume on Coinbase for MON was around $274 million during its initial days. This robust activity in South Korea highlights strong retail interest, despite a general market downturn affecting European and American platforms.
Wider Altcoin Landscape
- Ethereum has seen a slight recovery to about $2,900.
- XRP has experienced a minor decline of 1.3% over the past 24 hours.
- STRK has lost over 40% in the last week, erasing gains from earlier this month.
Overall, while Bitcoin maintains its steadiness, altcoins are experiencing a challenging period marked by uncertainty and volatility. Investors are increasingly drawn to Bitcoin for its comparatively lower risk amid a turbulent market landscape.
