Analysis: Crypto Derivatives Market Shifts to Bearish, Potential for Larger Liquidation if Bitcoin Drops Below $60,000

BlockBeats News, June 4th. The cryptocurrency market encountered a new round of selling and liquidation on Thursday, with Bitcoin falling to $61,300 at one point, then rebounding to $64,680, and currently trading around $62,500. Over the past two days, the total liquidation volume of leveraged positions in the entire market was approximately $3 billion. Data shows that in the past 24 hours, the futures trading volume has risen to $305 billion, but the open interest has decreased by 8.5% to $111.4 billion, indicating that the market is mainly deleveraging rather than adding new positions. The open interest of Bitcoin futures has dropped from a historical high of over 800,000 BTC yesterday to 766,000 BTC.

Investors seem to be leaving the cryptocurrency market and turning to the AI narrative in the traditional market. The derivatives market has significantly shifted to a bearish outlook. Both BTC and ETH put-call skews have strengthened, indicating that investors are willing to pay a higher premium for downside protection. The open interest of BTC put options at a $60,000 strike price on Deribit has exceeded $1 billion, and the most actively traded options contract in the past 24 hours is the $55,000 put option.

Altcoins have seen deeper declines, with NEAR, ZEC, JUP, DASH, ENA, and FET all dropping by over 10%, and HYPE falling 12% after reaching a new high this week. The subsequent price trends of altcoins will largely depend on whether Bitcoin can hold above $60,000. If this level is breached, it may trigger more liquidations and put greater pressure on altcoin trading pairs with lower liquidity.