Markets Bitcoin Holds Steady at $64,000 as Rising Yields and Oil Prices Weigh on Stocks
Bitcoin has seen a slight decline of 0.6% since midnight UTC, paralleling a 1.1% drop in Nasdaq 100 futures, as market participants await Wednesday's FOMC meeting minutes and a crypto summit at the White House.
By Oliver Knight, Omkar Godbole|Edited by Sheldon Reback 21 min ago 3 min read Make preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
Bitcoin price (CoinDesk)Show- Bitcoin is retracing its gains from Monday, having risen from $62,600 to $64,600, in line with a decline in Nasdaq 100 futures influenced by increased bond yields and oil prices.
- Brent crude oil has climbed back to $94 per barrel following the expiration of a 60-day U.S.-Iran ceasefire without a new agreement, contributing to inflation concerns ahead of Wednesday's Federal Reserve meeting minutes.
- The Federal Reserve is set to release the minutes from its July 28-29 meeting Wednesday, coinciding with a scheduled meeting between President Trump and cryptocurrency industry leaders at the White House.
Bitcoin BTC$64,138.49 is currently trading near $64,000, experiencing a pause after a rally that lifted it from $62,600 earlier in the week. The leading cryptocurrency has experienced a 0.6% decrease since midnight UTC, following a 1.1% dip in Nasdaq 100 index futures, driven by rising Treasury bond yields and escalating oil prices.
Ether ETH$1,896.16 has also seen a decline of approximately 1% since midnight, with other cryptocurrencies like SUI, XLM, and TAO following suit.
The uptick in yields reflects market apprehension ahead of the Federal Reserve's minutes due Wednesday, particularly after two recent lower-than-expected inflation reports. Brent crude oil prices rebounded to $94 per barrel after a 60-day ceasefire between the U.S. and Iran ended without a new agreement.
On the same day, President Trump is anticipated to meet with crypto executives at the White House, as U.S. policy has been a significant factor influencing market movements and the fluctuating performance of Bitcoin.
Derivatives Positioning
- Taker ratio turns bullish: Following Bitcoin's outperformance against U.S. stocks on Monday, the long-short taker volume ratio in crypto futures shifted from neutral to bullish, with long positions representing over 51% of the trading flow. Takers are traders who transact at available prices, thus removing liquidity from the order book.
- Funding rates indicate demand for longs: Bitcoin traders are pursuing bullish positions, as shown by annualized perpetual funding rates reaching a 20-month high, according to data from CryptoQuant. Positive funding rates suggest that futures are trading at a premium to the spot price, indicating bullish sentiment.
- Bitcoin open interest remains stable: Overall open interest in Bitcoin futures has stabilized around 750,000 BTC, a level it has maintained for several weeks.
- SOL sees increased activity: Open interest in SOL futures climbed to 66.88 million tokens, the highest level since July 10, with funding rates remaining close to zero.
- XLM shows bearish tendencies: The token has dropped nearly 3% to 15 cents since midnight, marking its lowest point since May 27, as it retraces from a peak of 27 cents at the end of May. Traders appear to be shorting the dip, with open interest in XLM futures rising 3.5% in the past 24 hours, the highest since June 4. With annualized funding rates at -28%, this signals a strong bearish sentiment. Additionally, a negative cumulative volume delta adjusted for open interest suggests sellers are more aggressively trading through market orders than through passive limit orders.
- Other notable open interest movers: CC, DOGE, and SUI are among the notable gainers in open interest, although their prices remain stable or negative. HBAR and CRO have seen notable decreases in open interest.
- Selective bullishness: Bitcoin is showing strength and buyer interest, with a positive cumulative volume delta over the past 24 hours. In contrast, most other major cryptocurrencies, including ETH, SOL, LTC, LINK, and DOGE, exhibit negative cumulative volume deltas, indicating that bullish sentiment is primarily concentrated in Bitcoin.
- Low volatility attracting new positions: The 30-day implied volatility indexes for Bitcoin and Ether are at their lowest for the year. The trading firm TDX Strategies has suggested utilizing this low-volatility environment to establish tactical positions favoring December options across Bitcoin and select altcoins like SOL and HYPE.
- Options flow favors upside bets: On Deribit, call options with strike prices above Bitcoin's spot price continue to dominate the volume rankings for the past 24 hours. The $70,000 call option expiring on September 25 has been the most actively traded Bitcoin option, while the $2,080 call expiring on August 28 is leading for Ether.
Token Updates
- PUMP increased by 1.31%, maintaining part of Monday's 7.8% surge that coincided with a 55% rise in daily trading volume to $90 million. The token has now stabilized above $0.00277.
- XMR gained 0.59% since midnight, reaching $417, marking a seven-day increase of over 11%. The privacy-focused coin has been one of the top performers this August.
- SUI has been the biggest laggard since midnight, dropping 4.62% to 64.36 cents, reversing a trend of relative strength that had seen it outperform many layer-1 coins through late July.
- FET decreased by 2.10% since midnight, now at 12.13 cents, continuing a trend of underperformance that has seen AI-related tokens lose much of their late-July gains.
- LINK is down 1.45% to $9.39, retracing some of the gains following Standard Chartered's prediction that it could rise by 2,000% by 2030, although it remains up by 8% since that forecast.