Crypto Market Drops 5% Amid Futures Outflows and Bearish Options

The crypto market is experiencing a downturn, with the CoinDesk 20 Index declining by 5% in the last 24 hours, and all its members showing losses. Key developments include:

Major tokens are seeing capital outflows from futures markets.
Investors are favoring put options for BTC and ETH on Deribit as protection against declines.
The U.S. core PCE inflation data release on Friday is anticipated to influence market volatility depending on the outcome.

Token Talk

Plasma launched its mainnet beta and native token XPL, reaching a valuation of over $12 billion.
The network, supported by Bitfinex, Bybit, Tether's CEO, and Peter Thiel, introduced $2 billion worth of XPL tokens into circulation.
Plasma is designed for stablecoin operations serving DeFi applications, with liquidity already deployed on platforms like Aave and Ethereum.
Some XPL tokens sold to U.S. investors are locked until mid-2026, affecting early trading availability.

Derivatives Positioning

BTC and ETH are seeing continued capital outflows, leading to a drop in notional open interest (OI).
Minor price recovery is questioned due to ongoing declines in BTC and ETH OI.
Smaller coins such as KAS and KCS have observed moderate increases in OI.
Crypto perpetuals on Aster DEX hit over $46 billion in volume, surpassing Hyperliquid's $17 billion.
CME BTC futures OI reversed the early September spike, while options OI is increasing, nearing November 2024 highs.
ETH futures and options positioning remain high on Deribit; SOL offers higher yields than ETH at 15% compared to 7%.
BTC, ETH options risk reversals are bearish towards December expiry, whereas SOL and XRP show bullish bias for year-end.