Crypto Markets Experience Bearish Sentiment Before U.S. Jobs Report and Options Expiry
Bitcoin (BTC) is down 0.7% over the past 24 hours, with a more pronounced decline of 0.9% since midnight UTC. The CoinDesk 20 Index has fallen 1.3%, with all but one component decreasing in value; XRP (XRP) is up less than 0.1%.
Negative sentiment is reflected in options and perpetual futures markets:
- Perpetual funding rates have decreased, with puts dominating over calls.
- Over $4.5 billion in options expiring on Deribit coincides with the U.S. jobs report for August.
- Open interest for BTC derivatives has cooled, dropping from $33 billion to about $30 billion.
- The three-month annualized basis across major exchanges is compressing to 5%-6%, limiting profitability for carry trades.
- The 25 delta skew shows traders are paying a premium for puts, indicating short-term bearish sentiment.
- Funding rate APRs remain stable around 4%-6%, suggesting a balanced market.
- Coinglass reports $225 million in liquidations, split evenly between longs and shorts.
- Key liquidation level to monitor is $110,250 according to Binance data.
Token Update
- Donald Trump-linked DeFi token World Liberty Financial (WLFI) fell to $0.174, a record low, following a 21% daily decline.
- Some early investors are locking in profits as hype fades.
- Notable trader made $250 million from the token sale, while another lost $2.2 million on WLFI futures.
- WLFI lacks distinguishing features compared to other DeFi tokens, leading to declining interest.
- Project team faces criticism for slow development; community expresses frustration over lack of action.
- WLFI's price trajectory resembles that of the TRUMP memecoin, which lost 89% of its value post-launch.
- Project attempted to reassure investors by stating treasury tokens would not be sold, but this did not halt the price drop.