Market Alert: Bitcoin Retraces Rally as Fear Dominates 📉
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." Here’s what you need to know:
📊 Market Snapshot:
· BTC trading near $87,000, down from last week’s 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
📈 Derivatives Signal Caution:
· Futures open interest down 3–6% for BTC, ETH, XRP, SOL
· BTC futures basis at cycle lows (4–5% annualized)
· Options activity shows bearish bias, with put spreads dominating
🔍 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.
💡 One Bright Spot:
Interest inUSDS (formerly DAI) continues to grow—its 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 SKY’s 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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#DeFi #Stablecoin #SKY #USDS #MarketUpdate
