Analysis of the crypto derivatives market turns bearish if Bitcoin falls below $60,000 or triggers a larger liquidation

The crypto market suffered a new round of selling and clearing on Thursday. Bitcoin fell to US$61,300, then rebounded to US$64,680, and is currently trading at around US$62,500. In the past two days, the market-wide leveraged position liquidation scale was approximately US$3 billion. Data showed that futures volume rose to US$305 billion in the past 24 hours, but open interest fell 8.5% to US$111.4 billion, indicating that the market is mainly deleveraging rather than adding new positions. Open interest in Bitcoin fell back to 766,000 BTC from a historical high of more than 800,000 BTC yesterday. Investors seem to be leaving the crypto market and turning to the AI narrative in traditional markets. The derivatives market has turned significantly bearish. Both BTC and ETH put options skew strengthened, indicating investors are willing to pay higher premiums for downside protection. The nominal open interest on BTC put options with a $60,000 strike price on Deribit exceeds $1 billion, and the most actively traded option contract in the past 24 hours is a $55,000 put option. Altcoins fell even deeper, with NEAR, ZEC, JUP, DASH, ENA and FET all falling more than 10%. HYPE fell 12% after hitting a new high this week. The subsequent trend of altcoin depends largely on whether Bitcoin can hold on US$60,000. If it falls below this level, it may trigger more liquidations and put greater pressure on the less liquid altcoin transactions.