MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailZcash, Hyperliquid tokens lead losses as traders bet against a bitcoin bounce
Crypto markets are facing pressure as key U.S. inflation data is expected later today.
By Omkar Godbole, Shaurya Malwa|Edited by Sheldon Reback Jun 10, 2026, 10:52 a.m. 3 min readMake preferred on (Unsplash)Key Points:
- The cryptocurrency market is under strain ahead of critical U.S. inflation data, with bitcoin trading below $61,500 and under its 200-week moving average, a level linked to prolonged bearish trends by some analysts.
- Funding rates and derivatives positioning for major tokens indicate a rise in bearish sentiment and increased short selling.
- A reported 350% increase in total value locked on Uniswap V4 was attributed to a hacked token that inflated dashboard metrics, while Morpho's token surged after a $175 million funding round.
The cryptocurrency sector remains under pressure as the U.S. inflation data is expected to reveal a three-year high in living costs, exceeding 4% in May.
Privacy-oriented zcash (ZEC) and the decentralized exchange Hyperliquid's HYPE have both seen declines of over 10% in the last 24 hours, reflecting a risk-averse trend in the broader market. Other tokens like ADA, ONDO, and BCH also fell more than 4%, while the CoinDesk 20 Index dropped by 3% during the same timeframe.
Bitcoin BTC$61,412.97 has retreated to below $61,500, nearly erasing the gains from a recent bounce that lifted prices above $64,000 on some exchanges. Notably, it is trading below its 200-week simple moving average (SMA), a key indicator closely monitored by traders.
Alex Kuptsikevich, chief market analyst at FxPro, commented, "The historical behavior of the 200-week moving average over the past 11 years suggests that the average duration spent near it is approximately 11 months, indicating a potential for an extended bear market."
Derivatives Market Overview
- In the last 24 hours, crypto futures trading volume increased by 1.2% to $193 billion, while open interest decreased by 1.5% to $102.27 billion. Liquidations surged by 38% to $418 million, primarily driven by long positions exceeding $300 million as bitcoin approached $61,000.
- Open interest for bitcoin futures rose to 728,000 BTC from 712,000 BTC, even with the decline in bitcoin's price, suggesting new short positions are being established in anticipation of further declines.
- This notion is supported by negative funding rates and a negative open interest-adjusted 24-hour cumulative volume delta, indicating that sellers are actively hitting bids rather than placing passive orders.
- Open interest for Solana futures climbed to 69.58 million tokens, nearly a 2% increase for the day, approaching its record peak of 71.57 million from June 5. Negative funding rates and cumulative volume delta reflect a bearish outlook similar to bitcoin's.
- The bearish sentiment is prevalent across most major cryptocurrencies, with negative funding rates and cumulative volume delta for many, including ether (ETH) and XRP, except for XMR, which shows a slightly positive 24-hour cumulative volume delta.
- Bitcoin's 30-day implied volatility index increased to 51.21%, up from 45.8% on Monday, indicating heightened uncertainty ahead of the U.S. CPI announcement. Ether's implied volatility index has also risen.
- On Deribit, short-term puts for both BTC and ETH continue to trade at a significant premium over calls, indicating sustained demand for downside protection. The one-week implied volatility is priced lower than the one-week realized volatility, favoring options buyers.
- A long butterfly strategy was set up for the July 31 expiration, involving long positions in calls at the $70,000 and $80,000 strike prices, while shorting 2x in the $75,000 call. This strategy profits if BTC stabilizes around $75,000 by the end of July, suggesting limited directional confidence from the trading desk behind this strategy.
Market Developments
- The total value locked (TVL) in Uniswap V4 saw a staggering increase of over 350% in just one day, with DefiLlama reporting around $2 billion in apparent inflows concentrated on BNB Chain. This surge appeared to indicate a significant liquidity influx into the platform.
- However, this was misleading. The spike was traced back to the Humanity Protocol's H token, which had been hacked and minted in unlimited quantities a day prior. The worthless tokens inflated the dashboard's dollar value without representing actual deposits. Confirmation was sought from DefiLlama's founder regarding this anomaly.
- Santiment, a market analysis firm, noted that the current market selloff has reached a historically significant buy zone.
- The 30-day market value to realized value (MVRV) metric, which measures the average profit or loss for recent buyers of a token, indicates that recent buyers are at a loss, with bitcoin down by 10%, ether by 12%, chainlink by 9%, XRP by 8%, and cardano by 18%. Santiment categorizes the first four as "fair buy" opportunities, while cardano is labeled a "strong buy."
- The token for MORPHO$1.9021 gained 12% in 24 hours after the on-chain lending protocol successfully raised $175 million, marking one of the largest funding rounds in DeFi history. This round was co-led by Paradigm, a16z crypto, and Ribbit Capital, with additional support from Apollo and VanEck. The funding valued the protocol at up to $2 billion, although the token later experienced some price correction.
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