Following a bullish weekend, the crypto market faced a Monday decline, driven by renewed tensions in the Middle East, while South Korea's Kospi dropped 9.2% and $253 million in leveraged positions were liquidated.
By Oliver Knight, Saksham Diwan|Edited by Sheldon Reback Jul 13, 2026, 10:30 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Bitcoin price (CoinDesk Data)SummaryShow- Bitcoin experienced a 1% drop, while LIT fell 8% in its first major correction after surging 200% in two months, influenced by escalating tensions between Iran and the U.S. over the Strait of Hormuz, affecting risk assets across the board.
- In the derivatives market, $253 million in liquidations occurred over 24 hours, mainly affecting long positions, though overall positioning remains cautious.
The cryptocurrency market faced a downturn during the Asian and European trading hours on Monday, with bitcoin BTC$62,919.01 dropping to $63,100 from a closing price of above $64,300 over the weekend.
This marks a decrease of roughly 1%. The altcoin market saw even sharper declines, with LIT leading the way, experiencing an 8% drop in its first major selloff since its impressive 200% rise in the past two months.
The retreat from riskier investments was also evident in equity markets, as South Korea's Kospi index plummeted 9.2%, with SK Hynix, a memory chip manufacturer that recently debuted in the U.S., falling 15%. Both Japan's Nikkei and China's SSE indices dropped by over 2%.
The declines were attributed to renewed hostilities in the Middle East, where Iran and the U.S. exchanged airstrikes in a struggle for control over the Strait of Hormuz.
U.S. stock futures also indicated a lower opening, with Nasdaq 100 futures down 0.9% and S&P 500 futures declining by 0.25% since midnight.
It's important to note that prior to the weekend, bitcoin and the overall crypto market had enjoyed a bullish trend, distancing themselves from immediate threats, and the Monday selloff may also be seen as profit-taking.
Derivatives Market Analysis
- Bitcoin derivatives positioning remained stable this week, with open interest (OI) at $17 billion and a three-month annualized basis of 3.8%.
- Funding rates were mostly unchanged or positive across various exchanges, except for Bybit, which had a negative annualized rate of approximately -13% on BTC perpetual contracts. A consistent OI combined with a solid basis and positive funding suggests the market is maintaining its positions without significant new leverage being introduced.
- Options positioning appears to be leaning bullish, with a 24-hour put/call ratio of 64/36 favoring calls. Although the one-week delta skew is still elevated at 16%, it has decreased from 26% the previous week, indicating a reduction in call demand.
- The term structure for at-the-money options remains in contango, with the front end around 34%-35% and the long end approximately 43% out to mid-2027, suggesting traders expect a stable long-term volatility environment.
- Coinglass data reveals $253 million in 24-hour liquidations, with 76% attributed to long positions and 24% to shorts. Bitcoin ($70 million) and Ethereum ($60 million) led the liquidations in nominal terms.
- The Binance liquidation heatmap points to $62,000 as a key level to watch in case of a price downturn.
Token Performance Update
- AI tokens FET and NEAR showed resilience, each gaining approximately 1.5% despite the overall market decline.
- Hyperliquid (HYPE) followed LIT's downward trend, falling about 3.3% to $65.1, marking its lowest point since July 2.
- CoinMarketCap's "Altcoin Season" indicator currently sits at 56/100, up from last week's average of 50, indicating a more risk-on sentiment among investors after a prolonged period of losses.
- Cardano (ADA), one of the most volatile tokens recently, experienced a 39% drop in June, rebounded over 40% at the start of July, but has since retraced, losing 19% since July 4.
- The Solana-based decentralized exchange Jupiter (JUP) has also faced challenges, dropping over 15% in the past week as its daily trading volume fell to just $17 million, down from over $500 million in 2025.
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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
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
By CoinDesk Research5 minutes agoCEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
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