Market Wrap: Crypto Market Cap breaks $ 1.5k when buyers show up for the dip
Bitcoin fully reduced losses from Sunday's slump as the leading cryptocurrency fell from around $ 48,600 to below $ 46,000 early Monday morning. As of 9:00 PM UTC (4:00 PM ET), Bitcoin was trading above $ 48,600 on Coinbase. However, the leading cryptocurrency has yet to trade above the psychologically significant $ 50,000 mark.
Much of Bitcoin's troubled price movement and its recent slump could be due to deleveraging in futures. Eager bulls piled into long trades expecting a quick breakout to $ 50,000 or more. According to market data from Skew, funding rates for perpetual Bitcoin futures rose steadily through February, with some funding rates hitting their highest levels in the past 12 months.
According to Bybit, Bitcoin futures liquidated contracts worth over $ 520 million in the past 24 hours. The eager buyback following these liquidations suggests the market's robust upward move after overzealous bullish futures traders rolled back.
High positive refinancing rates signal a rise in long positions, while negative rates indicate a more bearish sentiment. The market tends to reset itself when traders, especially in overcrowded derivatives positions, become excessively bearish or bullish.
While some traders may be dissatisfied with the choppy price movement, other market participants are enjoying themselves. For example, Bitcoin miners posted record sales of $ 354 million last week, beating the previous record of $ 340 million set in mid-December 2017. Network fees contributed over 15% to this revenue.
Ether, the second largest cryptocurrency by market capitalization, rose $ 1,820 on Monday and rose less than 1% in 24 hours from 9:00 PM UTC (4:00 PM ET).
Shortly after Ether hit new record highs above $ 1,850, it also saw a sizeable decline, falling nearly 10% to around $ 1,660 early Monday. In the past 24 hours, Ether futures worth over USD 313 million per Bybit have been liquidated.
Overall, the DeFi sector followed, according to Messari. But Ethereum and the various assets in the DeFi ecosystem have since recovered. DeFi's overall performance increased nearly 3% per Messari in the past 24 hours.
Other alternative cryptocurrencies have also recovered from the market slump. FTX's altcoin index perpetual futures are up nearly 20% from their early Monday morning lows, fully tracking the correction.
Digital assets on CoinDesk 20 are X Monday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):