The crypto market had a period of upside over the weekend after two consecutive losing weeks. Bitcoin rose 4% in the last 24 hours and after rising as high as $106,500, it is now trading around $106,000 as it tries to steer clear of the psychological level of support at $100,000. Ether added 6.5%.
The altcoin market outperformed bitcoin, with bitcoin dominance falling to 59.1% from a November 5 high of 60.1%. This is a signal that the touted $2,000 tariff payout in the US will serve as a boost to altcoins, as it did during the Covid era.
Decentralized finance protocols (DeFi) also saw a boost, with total value locked (TVL) rising to $142.8 billion, according to DeFiLlama data. Starknet Bridge TVL increased 20% to $913 million and Suilend also increased 20%.
The increase in TVL can be attributed to active appreciation, but since the SUI token has only risen 7%, it is more indicative of investors depositing to generate a return, reflecting confidence in the market.
Derivatives positioning
By Omkar Godbole
- Despite BTC’s rapid rise to $106,000, options on Deribit continue to show a bias for puts across all tenors. In ETH’s case, calls are trading at a premium to puts from January expiration, indicating a bullish outlook.
- Block flows included a long position in the $99,000 put that expires on November 14th and a bull call spread in ether involving $3,900 calls and $4,400 strikes, both expiring on November 21st.
- Overall, options have been mixed with buyers of call planes suggesting optimism and sellers of call spreads expecting limited rallies.
- In the futures market, XRP, LTC and LINK have seen double-digit open interest (OI) growth in the past 24 hours, confirming gains in their spot prices. OI also rose in other major tokens, including BTC and ETH, indicating renewed capital inflows.
- The OI-adjusted cumulative volume delta for most tokens, excluding ZEC and BCH, is negative for the last 24 hours, a sign that while spot prices rose, so did the net selling of futures. The divergence raises a question about the sustainability of gains.
- DOT stands out with negative funding rates, indicating a bias for bearish short positions.
Token Talk
By Oliver Knight
- The altcoin market saw a much-needed boost on Monday, supported by President Donald Trump’s announcement of a $2,000 tariff-related dividend being offered to US citizens.
- One of the biggest winners was the Trump affiliate which rose 26% during Asian hours on Monday.
- XRP, XLM, and HBAR all posted gains of more than 10% over the past 24 hours. These three tokens are favored by retail investors, suggesting that the move is backed by those who can receive the dividends as opposed to institutional flows via ETFs.
- CoinMarketCap’s “altcoin season” indicator has risen to 34/100 from a 90-day low of 23/100, showing strength across the altcoin market relative to bitcoin which ticked up to $106,500 on Monday.
- One sector that cooled was privacy coins: Monero and line both had marginal losses after sharp gains in the past two weeks.
- The decentralized finance (DeFi) market also showed signs of a turnaround, with total value locked (TVL) across all protocols rising to $142.8 billion from $136.2 billion over the weekend, according to DefiLlama.
