CoinDesk
Bitcoin fell to $83,344, down 1.23% since midnight UTC, as the U.S. 10-year Treasury yield reached its highest level since 2007. U.S. stocks and crypto moved lower together, while Asian and European traders bought the dip. The dollar index rose 0.13% to 101.24, while gold, silver and equity futures also weakened.
Derivatives data points to existing positions being closed rather than a major build-up of fresh shorts. Shorts accounted for more than 52% of 24-hour taker volume, which rose 10% to $250 billion, while open interest fell nearly 6% to $149 billion. Bitcoin futures open interest dropped 6% against a 3% price decline over 24 hours, consistent with long unwinding.
Why it matters
The move links Bitcoin's weakness to a broader risk-off shift driven by higher bond yields. Nasdaq 100 futures fell more than 1%, S&P 500 futures lost 0.61%, and gold declined 0.71% to $4,257. The dollar was the main major asset showing strength.
The positioning picture is not uniformly bearish. Binance whale long/short accounts remained above 1 at 1.30, suggesting large traders are not fully embracing the selloff. Litecoin also gained about 8% while its futures open interest rose in coin terms, providing a clear exception to the broader deleveraging trend.
Market impact
Selling pressure remains broad. XRP's open interest is falling faster than its price, while ETH and SOL open interest declines roughly match their price drops. Negative cumulative volume delta across BTC and ETH shows aggressive selling has outpaced buying, with XRP, SUI and AVAX among the hardest-hit names.
Options markets are cautious rather than panicked. BTC and ETH implied volatility remains in recent ranges, but one-week skew has turned positive as traders demand more downside protection. More than $17 billion in BTC and ETH options expire on Deribit Friday, creating a potential volatility catalyst as positions are rolled or settled.
Frequently asked questions
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What drove Bitcoin lower in this move?
Bitcoin weakened as the U.S. 10-year Treasury yield reached its highest level since 2007, pressuring stocks and other risk assets. The dollar index also rose 0.13% to 101.24.
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Does the derivatives data show fresh short selling?
The data points more strongly to existing positions closing. Taker volume rose to $250 billion while open interest fell nearly 6%, and BTC futures open interest declined faster than price.
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Which crypto assets showed the strongest divergence from Bitcoin?
Litecoin gained about 8% while its futures open interest rose in coin terms. Binance whale accounts also remained net long, with a long/short ratio of 1.30.
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How are XRP, ETH and SOL positioned in the selloff?
XRP open interest is falling faster than its price, consistent with active deleveraging. ETH and SOL open interest declines roughly match their price drops, indicating less pronounced position closing.
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Why could Friday's options expiry matter?
More than $17 billion in BTC and ETH options expire on Deribit Friday. Traders may roll positions into later expiries or let them settle, either of which could add volatility.
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