Tokens of Solana (SOL) and Dogecoin (DOGE) dipped the most among the major cryptocurrencies even as bitcoin remained mostly unchanged over the past 24 hours.

SOL lost as much as 8% amid a continual “risk-off” sentiment for major cryptocurrencies. DOGE dropped 5%, while BNB Chain’s BNB, Cardano’s ADA, and XRP slid a relatively lesser 3.5%, data on CoinGecko showed.

Outside of the top ten, Avalanche’s AVAX slid 11%, while Shiba Inu’s SHIB lost just 2.5% despite being a relatively more volatile token. Ether (ETH) lost 3.2% amid falling demand for block space on Ethereum, suggesting lower development and on-chain activity.

Block space is the amount of transactional data that can be included in each block, with users paying ‘gas’ fees for doing so. Lower block demand generally means a fall in user activity on any particular network.

Further downside

On-chain analytics firm Glassnode said in a note earlier this week that derivatives market suggested fear of further downside remains among investors.

“Poor price performance, fearful derivatives pricing, and exceedingly lacklustre demand for block-space on both Bitcoin and Ethereum, we can deduce that the demand side is likely to continue seeing headwinds,” Glassnode said.

Yields on a three-month rolling basis for futures hover over around 3.1% for both assets, which “is historically very low,” Glassnode said. Such yields are generated when there is mispricing between an asset’s spot and futures price. Traders go long on the underlying asset and short its, or a related asset’s, futures. The difference is pocketed.

BTC

Yields on a popular bitcoin and ether futures trade have decreased steadily. (Glassnode)

However, lower yields give traders little reason to deploy capital and enter markets, which could mean further downside as new capital fails to bid up spot, and futures, prices. The capital could re-enter if broader markets provide low returns.

“[Yield] is now higher than the US 10yr Treasury yield of 2.78%, which may start giving investor capital a reason to re-enter the space,” Glassnode analysts said.

The bearish futures data came alongside options activity on bitcoin that suggested a bearish sentiment among traders, as reported earlier this week. The put/call ratio on bitcoin options reached 12-month-highs of over 0.72, indicating traders were hedging their portfolios against a move downwards.

Put options are a contract that gives the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a given price. Call options, on the hand, allow call buyers to purchase the asset at a predetermined price in the future.

The put/call ratio is a measure of puts against calls, which indicates how traders are positioning for a market move.

Current conditions remain bearish, however. Bitcoin has spent the past week trading within a tight range between $28,700 and $30,500 and has printed over eight consecutive weeks of downside for the first time in its trading history.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP