Cryptocurrency values decreased as investor anxiety regarding AI stocks and escalating tensions between the U.S. and Iran influenced market sentiment, although a technical indicator suggests potential oversold conditions as the weekend approaches.
By Oliver Knight, Omkar Godbole|Edited by Sheldon Reback Jul 17, 2026, 10:26 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Bitcoin price (CoinDesk data)SummaryShow- Bitcoin experienced a decline of 1.2%, while ether fell by 1.74%, as a selloff in semiconductor stocks globally and renewed tensions in the Middle East contributed to a risk-off sentiment, pushing gold above $4,000.
- Privacy coins such as ZEC and DASH showed some resilience, with both posting gains. Tokens related to AI, including FET and TAO, also increased slightly despite the sector's recent struggles.
- The average relative strength index (RSI) for various crypto pairs dropped to 42.23, nearing the oversold zone that previously led to a relief rally in July, providing potential support for bulls as the weekend approaches.
On Friday, the cryptocurrency market saw a downturn, with bitcoin BTC$63,136.85 recovering from a dip below $63,000, reflecting a 1.2% decrease since midnight UTC, while ether (ETH) dropped 1.74%. The total market capitalization for cryptocurrencies fell by 1.86%, settling at $2.16 trillion.
This decline is not limited to cryptocurrency; the Nasdaq 100 index futures fell by 1.91%, and S&P 500 futures decreased by 0.96%, indicating that broader macroeconomic factors are at play rather than specific issues within the crypto market. The Nikkei 225 index in Japan fell by 4%, while South Korea’s Kospi was closed for Constitution Day.
In a typical risk-off market reaction, the Dollar Index (DXY) climbed to 100.75, and gold rose by 0.61%, surpassing the $4,000 mark.
The downward trend can be linked to a selloff in technology stocks across North America and Asia, coupled with heightened tensions in the Middle East.
"The market is closing the week with two significant challenges: fatigue from AI stocks and rising tensions in the Hormuz Strait,” stated Patrick Munnelly from Tickmill Group. “The semiconductor selloff has escalated from profit-taking to a clearing of positions, pulling Asia down to its lowest levels in months.”
However, a positive sign as the weekend approaches is the average relative strength index (RSI) across crypto pairs, which has dropped to 42.23, nearing oversold conditions that previously triggered a bounce in July.
Derivatives Positioning
- The long-short ratio in crypto futures markets, assessed through taker buy-sell volume, has decreased to 0.94, the lowest level since June 2.
- A "taker" refers to an entity executing a trade at the current market price, and this ratio reveals which side is more aggressive with market orders. The latest data indicates that bears are currently dominating the market, corroborating the recent price declines.
- Despite this, overall trading volume has decreased by 4% over the past 24 hours to $163 billion, while open interest (OI) has remained relatively stable at around $111 billion. This suggests that although buy-sell volume is leaning bearish, overall market activity has lessened during the price decline.
- Bitcoin's total OI has decreased to 747K BTC from a previous high of 755K BTC. A similar trend is observed in ETH, XRP, and SOL futures, where OI has either stabilized or slightly declined.
- These trends imply that major token futures are not currently indicating aggressive new short positions entering the market, nor are there signs of panic selling due to margin calls. Presently, the price drop appears to be orderly.
- HYPE, however, saw an OI increase of nearly 2% while its spot price dropped by 8%. This combination often signals price weakness, indicating new short positions are being established. Additionally, the 24-hour OI-adjusted cumulative volume delta (CVD) for HYPE is the most negative among major tokens, resembling that of memecoin DOGE. A negative CVD suggests aggressive selling, with sellers shorting at market prices instead of using passive limit orders.
- The broader market sentiment seems similarly negative, as most coins, including BTC and ETH, exhibit a negative 24-hour CVD.
- Nevertheless, bitcoin and ether's 30-day implied volatility indexes remain near recent lows, indicating ongoing market stability. In essence, while spot prices have fallen, the selloff has not yet prompted a rush for options or hedging contracts.
- In ether's case, a trader or group of traders recently purchased large-scale straddles, anticipating significant price fluctuations by July 24.
- In terms of trading volumes, three of the five most-traded ETH contracts are currently puts, which protect against declines in the underlying asset. Simultaneously, the $2,100 call remains the most traded option in the past 24 hours. For bitcoin, the $62,500 put has become the preferred choice among traders.
Token Update
- Lighter (LIT) recorded the largest losses on Thursday, dropping 3.55% to $2.195 as profit-taking affected a token that had increased over 200% from May to early July.
- Conversely, privacy coins demonstrated resilience, with zcash (ZEC) gaining 1.56% to $531 and dash (DASH) increasing by 0.78%, both maintaining their relative strength in recent weeks.
- AI tokens FET and TAO managed slight increases of approximately 0.20%, indicating some resilience from a sector that has faced challenges in sustaining momentum since mid-June.
- CoinMarketCap's Altcoin Season indicator rebounded to 53/100 on Friday, underscoring bitcoin’s comparative weakness against numerous altcoin trading pairs.
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Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
In June, CEX trading volumes increased for the first time in five months, with spot trading rising by 15.3% to reach $1.11 trillion, and RWA perpetual volumes hitting a record $311 billion.
By CoinDesk ResearchJul 13, 2026In June, CEX trading volumes increased for the first time in five months, with spot trading rising by 15.3% to reach $1.11 trillion, and RWA perpetual volumes hitting a record $311 billion.
Why it matters:
In June, CEX trading volumes increased for the first time in five months, with spot trading rising by 15.3% to reach $1.11 trillion, and RWA perpetual volumes hitting a record $311 billion.
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