In the last day, the cryptocurrency market has shown notable weakness, likely influenced by bearish options pricing and a steady dollar index.
Bitcoin’s price is now at approximately $112,797.34, while Ethereum has dropped about 2.6% to $4,162.70, with some reports indicating a decline of over 6%. The general market sentiment, as reflected in the Coindesk 20 Index, has seen a nearly 8% decrease, and the Coindesk 80 Index is down 7.5%, pointing to widespread market challenges.
U.S. crypto stocks have faced pressure in pre-market trading as well. Companies like Bitcoin Investor Strategy (MSTR) and Coinbase Global (COIN) saw falls of 2.8%, though futures tracking the S&P 500 were only down 0.2%.
Some market analysts view these pullbacks as a necessary correction that could help remove excess leverage, potentially paving the way for more stable growth. The recent downturn has led to liquidations worth around $1.5 billion in leveraged crypto positions.
There’s a mix of optimism and caution among experts. “Overall inflows aren’t robust enough to significantly boost Bitcoin,” cautioned Markus Thielen, founder of 10x Research. So far this year, the crypto market has attracted about $140.5 billion in inflows, with $63.1 billion coming from stablecoins, and $52.4 billion directed towards Bitcoin via ETFs and futures.
Interestingly, recent ETF flows show a shift in preference toward Bitcoin over Ethereum. In September alone, U.S. Bitcoin ETFs have raised more than $3.48 billion, contrasting sharply with the $400 million collected by Ethereum ETFs.
Matrixport suggests that demand for Ethereum from various companies may be cooling off. “Recently, Ethereum-financial companies have been the main buyers, but with a shrinking net asset value, their ability to invest further might diminish,” the company noted.
In other news, Arthur Hayes’ family office fund, Maelstrom, has emphasized future supply tests of Hyperliquid hype tokens for decentralized exchanges. About 237.8 million of these tokens are expected to be unlocked over the next two years, potentially increasing monthly supply by nearly $500 million.
Hayes reportedly sold 96,600 hype tokens earlier in the week, which was valued at around $5.1 million. Following that sale, the token’s price dropped to nearly $46, extending its recent three-day decline.
Looking at traditional markets, gold has seen a boost due to financial anxieties, driving demand for safe-haven assets. Meanwhile, the yen has remained relatively stable against the dollar after comments from a candidate for the Japanese Prime Minister’s position, discussing how a weak yen has influenced inflationary pressures.
What to Watch
- Crypto
- September 22: Coinbase will introduce the MAG7 + Crypto Equity Index Futures, a new product combining major U.S. technology stocks with cryptocurrency ETFs.
- Macros
- September 22, 8:30 AM: PPI Year-over-Year Outlook for Canada will be released.
- September 22, 12 PM: A speech from Governor Stephen Miran on non-financial military and monetary policy.
- Revenue (estimates based on current data)
Token Events
- Governance votes and discussions
- Diridium announces community governance plans.
- Gnosis Dao is holding a vote for a $40,000 Pilot Growth Fund to empower GNO owners and support community-driven initiatives. Voting ends on September 23.
- Balancer Dao will vote for an Ecosystem Roadmap and Funding Plan, with goals set through the second quarter of 2026, seeking $2.87 million and 166,250 BAL tokens. Voting concludes on September 23.
- Unlocks
- Token launches
- September 22: 0g will be listed on Kraken, Lbank, Bitget, and BitRue.
Market Talk
Many altcoins experienced significant price movements on Monday, with assets like Pumps, Rays, and CRVs falling to month-long lows.
This decline was worsened by a liquidation cascade of $1.6 billion, with about $500 million in ether positions affected. Interestingly, ether’s funding rates have reversed negatively, meaning short traders are now paying to maintain their positions, suggesting a shift in market sentiment following a recent rally.
Major cryptocurrencies such as Bitcoin, Ethereum, and Solana have walked into their respective support levels, which are currently showing bearish sentiments. This might allow traders to recover from previous aggressive short positions.
The average Relative Strength Index (RSI) for cryptocurrencies hovers around 28.4, indicating heavily sold conditions, which might trigger a relief rally unless Bitcoin and Ethereum breach their support levels.
Derivatives Positioning
- The top 20 tokens, excluding Bitcoin and hype tokens, have seen significant declines in future open profits as prices fell.
- Short positions are beginning to emerge through USDT futures, with open interest increasing slightly.
- CME’s Bitcoin futures continue trading at a premium around $100 compared to spot prices. Traders should monitor this for potential shifts as selling pressure increases.
- Delibit has noted an intensifying demand for downside protection as market prices drop, with a rise in premiums.
- The sentiment around XRP and Solana options has begun to shift with the broader Bitcoin and Ethereum market trends.
Market Movements
- Bitcoin is down 2.6% from Friday, currently sitting at $112,403.60.
- Ethereum’s price has decreased 6.7% to $4,162.70.
- The Coindesk 20 index has also dropped 5.93%, pricing at 4,015.36.
- Ether’s staking rate is now at 2.8%, down 5 basis points.
- Bitcoin’s funding rate stands at 0.0002% (or 0.2606% annually).
Additional Market Highlights
- The DXY index has slipped 0.12% to 97.53.
- Gold futures rose 1.4% to $3,757.50.
- Silver futures increased 2.32% to $43.95.
- The Nikkei 225 ended at 45,493.66, down 0.99%.
- The Hang Seng index fell by 0.76% to 26,344.14.
- The FTSE remained unchanged at 9,208.44.
- The Euro Stoxx 50 drooped 0.47% to 5,432.61.
- The DJIA saw a rise of 0.37% to 46,315.27.
- The S&P 500 closed up 0.49% at 6,664.36.
- The NASDAQ composite gained 0.72% to reach 22,631.48.
- The S&P/TSX Composite increased by 1.07% to 29,768.36.
- The S&P 40 Latin America index slipped 0.18% to 2,911.26.
- U.S. 10-year notes have decreased by 1.2 basis points to 4.127%.
- E-Mini S&P 500 futures are down by 0.3% to 6,702.00.
- E-Mini NASDAQ-100 futures have dipped 0.36% to 24,776.25.
- E-Mini Dow Jones Industrial Average is down 0.33% at 46,496.00.
Bitcoin Statistics
- Bitcoin’s dominance: 58.61% (up 1.11%).
- Bitcoin to Ether ratio: 0.03699 (down 4.1%).
- Hashrate (7-day moving average): 1,079 EH/s.
- Hash price: $50.10.
- Total fee: 3 BTC/$347,276.
- CME Futures Open Interest: 145,845 BTC.
- Bitcoin priced in gold: 30.1 oz.
- Bitcoin vs. Gold Market Cap: 8.59%.
Technical Analysis
The Bitcoin to Gold ratio has dipped to 30.25, marking its lowest level since June 23. With previous support at 30.57, it’s currently testing near 29.44 from late June. This suggests that gold continues to outpace Bitcoin.
Crypto Stocks
- Coinbase Global (COIN): Closed Friday at $342.46, dipping to $330.18.
- Round (CRCL): Finished at $144.14, recently down to $138.11.
- Galaxy Digital (GLXY): Closed at $32.87, now $31.08.
- Strong (BLSH): Finished at $69.18, which later fell to $65.89.
- Mara Holdings (MARA): Closed at $18.29, recently down to $17.52.
- Riot Platforms (RIOT): Ended at $17.46, now at $16.90.
- Core Scientific (COLT): Closed at $16.62, down to $16.17.
- CleanSpark (CLSK): Closed at $13.62, fell to $12.94.
- Coinshares Valkyrie Bitcoin Miners ETF (WGMI): Ended at $41.56, rising slightly.
- Escape Movement (EXOD): Closed at $29.18, nearly unchanged.
Cryptocurrency Related Companies
- MicroStrategy (MSTR): Closed at $344.75, down to $333.39.
- Semler Scientific (SMLR): Finished at $29.18, recently down to $28.45.
- Sharplink Games (SBET): Closed at $17.33, now $16.19.
- Upexi (UPXI): Ended at $6.58, down to $6.10.
- Light Strategy (LT): Closed at $2.80, now $2.70.
ETF Flow
Spot BTC ETF
- Daily net flow: $222.6 million.
- Cumulative net flow: $576.8 billion.
- Total BTC holdings: 132 million.
Spot ETH ETF
- Daily net flow: $47.8 million.
- Cumulative net flow: $139.4 billion.
- Total ETH holdings: 667 million.
While You Were Sleeping
- Ether, Dogecoin Lead as Bitcoin falls below $112K, resulting in a $15 billion liquidation wipeout.
- Bitcoin noted a 20% rise on Bitfinex, yet price remains below the 100-day average.
- The UK watchdog has accelerated the crypto approval process amid mounting criticisms.
- Traders are looking for clues on rate paths as gold prices hit fresh records.
- Metaplanet has made a significant purchase of $632 million in Bitcoin, positioning itself as a top holder.
