Bitcoin Clings to Crucial Support After Rebounding From Its Weakest Level Since 2024

TL;DR:

• Bitcoin hit its lowest level since September 2024, dropping to $58,100, before bouncing back toward $59,160.
• More than $1 billion in futures positions were liquidated in the last 24 hours, with longs taking the hardest hit.
• Bitcoin’s implied volatility index BVIV jumped to 53%, its highest level since June 7.

The crypto market is going through one of its most turbulent weeks. Bitcoin bounced from $58,100, its lowest price since September 2024, and stabilized around $59,160 during the early hours of Friday, though it still reflects a 3.1% decline on the day. The recovery was partial: Ethereum failed to follow suit and fell 5.9%, extending a three-session losing streak while holding around $1,550.

Traditional markets offered no relief either. Nasdaq 100 and S&P 500 futures are trading down 1% and 0.4%, respectively, in what appears to be a continuation of the tech rally collapse seen over the past three months.

Bitcoin Drags the Market Down

The derivatives market is sending discouraging signals. Over the last 24 hours, more than $1 billion in futures positions were liquidated, with longs accounting for the bulk. In the Ethereum segment, liquidations exceeded those of Bitcoin over the past 12 hours, a data point that reinforces ETH’s relative weakness.

Bitcoin futures open interest rose for the second consecutive day to 778,000 BTC, a notable increase from the recent low of 730,000 BTC. The jump occurred during Thursday’s sell-off, suggesting that traders opened short positions into the drop, anticipating further losses. On Deribit, Bitcoin’s weekly options skew approached 30%, reflecting a substantial premium on puts over calls — a clear signal that the market is seeking protection against a bearish scenario.

Aave Bucks the Trend

Bitcoin’s BVIV index climbed to 53%, its highest level since June 7 and a sharp jump from the 39% recorded on June 16. ETH’s equivalent index rose to 66%. Meanwhile, Wall Street’s VIX rose to 20%, though it remains within the range observed since early April.

Among the few assets that held up in the bearish environment, AAVE rose 3.3% on the day, extending a weekly gain of 18% driven by reports that exchange Kraken is looking to acquire a 15% stake in the company behind the DeFi protocol.