Bitcoin, Ether Tick Higher as Altcoins Retreat and Derivatives Signal Caution
Bitcoin (BTC) and ether (ETH) edged up—BTC around $67,000 and ETH near $1,970—while the broader altcoin market lagged amid waning volatility since the Feb. 5 selloff. Open interest in derivatives stabilized at $15.38 billion and funding rates moved flat-to-positive, but front-end implied volatility and a raised one-week 25-delta skew (≈12%) show traders are still paying for short-term protection. Coinglass-reported liquidations totaled about $218 million in 24 hours (77% longs), with BTC ($75M) and ETH ($53M) leading. Market breadth is weak: 97 of the top 100 tokens were down in 24 hours and the Fear & Greed Index sits at 11/100. Notable token moves included WLFI (-10% after a sell-the-news reaction), AXS retesting Feb. 6 lows, and MORPHO giving back gains. Macro context: bitcoin remains in a downtrend from its Oct. record high of $126,600, posting lower highs and lower lows; recent events (including a Mar-a-Lago forum) failed to produce a bullish catalyst. Key takeaways for traders: monitor BTC liquidation levels (Binance heatmap highlights ~$67,400), front-end IV/backwardation for hedging costs, funding rates for retail/institutional sentiment, and altcoin liquidity risks in low-volume conditions.
Neutral
The article presents a mixed market picture: BTC and ETH are marginally higher, derivatives open interest has stabilized, and funding rates have shifted to flat/positive—signs of reduced deleveraging. However, elevated short-term implied volatility, a notable one-week skew, large 24-hour liquidations concentrated in longs, and very weak altcoin breadth (97 of top 100 down) point to persistent risk aversion. Bitcoin’s longer-term structure remains a downtrend from the October peak. Taken together, these indicators suggest short-term caution with limited bullish conviction. For traders: expect muted range-bound trading unless a clear catalyst shifts implied volatility and funding dynamics. Short-term trades should prioritize risk management (tight stops, hedge with options or reduce size), while longer-term investors should watch for a sustained pickup in volume, narrowing IV term-structure, and improving breadth before increasing exposure.