Market Alert: Bitcoin Retraces Rally as Fear Dominates đ
Crypto markets remain under pressure this week, with Bitcoin giving back nearly all of its late-November gains and investor sentiment stuck in "extreme fear." Hereâs what you need to know:
đ Market Snapshot:
¡ BTC trading near $87,000, down from last weekâs high above $92,350
¡ Altcoins largely in the red, privacy coins hit hardest (ZEC -8%, XMR/DASH -5-6%)
¡ SKY (formerly MKR) bucked the trend, rising 6.7% on buyback news and growing USDS stablecoin adoption
đ Derivatives Signal Caution:
¡ Futures open interest down 3â6% for BTC, ETH, XRP, SOL
¡ BTC futures basis at cycle lows (4â5% annualized)
¡ Options activity shows bearish bias, with put spreads dominating
đ Why It Matters:
Bitcoin is underperforming U.S.equities, and the Altcoin Season Index remains low at 24/100, indicating capital is still concentrated in BTC and selected DeFi tokens.
đĄ One Bright Spot:
Interest inUSDS (formerly DAI) continues to growâits market cap has risen from $7.6B to $9.5B in two months, offering a 4.5% staking yield within the Sky ecosystem.
What to Watch:
¡ Can BTC hold above $86,000 support?
¡ Will SKYâs momentum continue amid broader market fear?
¡ Monitoring volatility spread between BTC and ETH for clues on next moves
Trade carefully, manage risk, and keep an eye on derivatives trends for directional signals.
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