Crypto Wrap: AVAX Weakens as Open Interest Falls, HYPE Disappoints

The crypto market turned lower on Thursday, with steep drops in bitcoin and ether sparking a wave of liquidations and dragging down altcoins.

Ether (ETH) slipped more than 3%, breaking below $4,000 and triggering multimillion-dollar liquidations, including losses for a major whale investor. Bitcoin (BTC) fell 1.5% to $115,600, erasing much of Wednesday’s rebound.

Broader losses followed, with recent outperformers ASTR, AVAX, and PUMP sliding by double digits over the past 24 hours. The sell-off coincided with weakness in Nasdaq and S&P 500 futures as fears of a possible U.S. government shutdown weighed on risk assets.

Crypto Signals Shifts in Sentiment

Analysts pointed to crypto’s latest moves as a potential early warning sign for broader financial markets.

“Crypto is once again signaling shifts in risk appetite,” said Alex Kuptsikevich, chief market analyst at FXPro. “Altcoins and smaller developed market currencies have been weakening since the Federal Reserve’s rate cut last week, and major U.S. indices began following this trend from Tuesday onward.”