Crypto Market Steady as IP Token Surges Above $10
The crypto market showed stability on Wednesday, with bitcoin recovering above $112,000. Smaller coins such as IP, MNT, and PUMP experienced double-digit gains, pushing CoinMarketCap's altcoin season index close to 60%, indicating the likely onset of altcoin season.
Key points include:
- IP token surged over $10 after Heritage Distillery adopted altcoins as treasury assets.
- Traders await U.S. inflation data, which may influence asset price movements.
- Analysts suggest that moderate inflation data could boost risk assets; overshooting expectations might pressure bitcoin and ethereum.
- Support levels to monitor: BTC at 108,800 and ETH at 4,250.
Derivatives Positioning
- BTC futures open interest remains steady ahead of U.S. CPI release.
- Open interest in ETH, SOL, and HYPE increased by over 2%, while XRP, SUI, ADA, and ENA saw capital outflows.
- Funding rates for top coins are at or above 10%, signaling a bullish bias without excess leverage buildup.
- Notional open interest in BTC options on CME reached a record $5.6 billion; futures activity is subdued.
- BTC and ETH puts due in December are trading at a premium, reflecting downside concerns.
Token Talk
- The crypto market is in "altcoin season," despite bearish sentiment persisting.
- CoinMarketCap's altcoin season index rose to 59/100, surpassing August's high of 57.
- Market intelligence platform Santiment noted that negative sentiment is increasing amidst rising prices.
- Altcoins like MNT and PYTH gained 15% and 10%, respectively, in the last 24 hours.
- Bitcoin continues to hover around $112,500, constrained between $107,000 and $113,000 for over two weeks.