Bitcoin is currently trading at $111,000, desperately holding on to the critical $110,000 support level. The world’s largest cryptocurrency has faced significant challenges in the wake of a weekend sell-off, which caused it to plummet from $121,000 to $110,000. This drastic decline resulted in a staggering $500 billion loss in the overall cryptocurrency market capitalization.
In the altcoin arena, losses have been even more pronounced. Plasma XPL is currently priced at $0.4169, reflecting a staggering 58% decline over the past week. Other notable altcoins such as FET, OP, and ETHFI have similarly faced steep declines, each losing more than 35% of their value in a brief period.
Turning to the derivatives market, the Bitcoin futures sector appears to be stabilizing following its recent tumult. Open interest has settled around $25.5 billion, showing little change from the previous day despite the market’s sharp downturn. The 3-month annualized basis is now trading within a lower range of 5-6%, a decline from its prior uptick. This indicates a slight cooling of the previously bullish sentiment among traders.
A key divergence in market sentiment is emerging, particularly in funding rates. On one hand, Bybit’s funding rate has turned negative at -5%, signaling a bearish outlook among certain traders. Conversely, Hyperliquid’s funding rate remains positive at 10%, suggesting a strong, yet isolated bullish conviction on that platform. This mixed sentiment illustrates a complex market landscape with segmented opinions across different trading environments.
The BTC options market is currently witnessing a significant bullish acceleration. The 24-hour Put/Call Volume has reached a roughly balanced 50-50 split, contrasting with previous call-dominant trends. Additionally, the one-week 25 Delta Skew has dramatically spiked to 12.62%. This positive skew indicates that traders are willing to pay a premium for call options, reflecting a strong desire to position for potential upward price movement.
Data from Coinglass reveals $627 million in liquidations over the past 24 hours, with a 70-30 split between longs and shorts. Liquidation activity has been led by Ethereum with $185 million liquidated, followed closely by Bitcoin at $125 million, and other assets accounting for $69 million. The Binance liquidation heatmap highlights $110,600 as a crucial liquidation level to monitor in anticipation of any further price drops.
In the realm of altcoins, Plasma XPL has faced severe setbacks, now priced at $0.4163 after another drop of 13.5% on Tuesday. This extends its losses to approximately 52% since its debut in late September. The stablecoin-focused layer-1 blockchain is under scrutiny, primarily due to concerns over its tokenomics and large allocations for ecosystem and growth initiatives. The current circulating supply stands at 1.8 billion against a total cap of 10 billion, raising fears of potential sell pressure as vested tokens become unlocked in the future.
Tokens were sold in the public round at $0.05 each, which means early ICO investors are currently profiting despite the plummeting price. However, those who invested after the exchange listings are facing steep losses amid a generally weak market sentiment. Analysts are projecting continued downward pressure on Plasma XPL, especially with a significant unlock of early investor tokens anticipated in the second quarter of 2026, potentially exacerbating market challenges at that time.
