Even while bitcoin (BTC) remained fairly stable over the past 24 hours, tokens of the Solana (SOL) and Dogecoin (DOGE) protocols dropped the most among the major cryptocurrencies. During the ongoing “risk-off” mood for major cryptocurrencies, SOL lost as much as 8% of its value.
According to Coin Gecko data, DOGE fell 5%, while BNB Chain’s BNB, Cardano’s ADA, and XRP fell 3.5 percent. Avalanche’s AVAX fell 11% outside of the top ten, whereas Shiba Inu’s SHIB dropped only 2.5 percent despite being a more volatile token. Ether (ETH) fell 3.2 percent as demand for Ethereum block space fell, implying a drop in development and on-chain activity.
More Bad News
In a note released earlier this week, on-chain analytics firm Glassnode noted that the derivatives market indicated that investors are still concerned about further decline.
“We can extrapolate that the demand side will continue to face headwinds,” Glassnode stated, citing poor price performance, frightened derivatives pricing, and incredibly anemic demand for block-space on both Bitcoin and Ethereum. Lower yields provide traders fewer reasons to deploy money and enter markets, potentially resulting in further losses as new capital fails to push up spot and futures prices. If broader markets offer low returns, the capital may re-enter.
According to Glassnode analysts Yield is currently higher than the 2.78 percent yield on the US 10-year Treasury,” according to Glass node analysts.
As reported earlier this week, the bearish futures data coincided with options activity on bitcoin, which indicated a gloomy attitude among traders. The put/call ratio on bitcoin options hit 12-month highs of over 0.72, indicating that traders were hedging their portfolios against a decline.
The put/call ratio on the other hand is a ratio of puts to calls that shows how traders are anticipating a market change.
However, the current state of affairs is bearish. For the first time in Bitcoin’s trading history, it has spent the past week trading in a narrow band between $28,700 and $30,500, and it has printed eight straight weeks of decline.
