Digital Asset Market Under Pressure as Nasdaq Decline Hits Crypto Sentiment

Here’s a more refined and slightly tighter rewrite:

Bitcoin fell 2.5% to around $62,300, while ether dropped more than 4% as roughly $717 million in liquidations amplified losses across altcoins.

The crypto market declined on Tuesday, with Bitcoin (BTC) sliding to about $62,300 after losing 2.5% since midnight UTC. Ether (ETH) fell more than 4% to near $1,650, extending weakness across major tokens.

The move tracked broader risk-off sentiment, with Nasdaq 100 futures down roughly 2.5% amid ongoing pressure on technology stocks.

TickMill strategist Patrick Munnelly attributed the weakness to profit-taking and concerns over rising bond yields.

Altcoins underperformed, with tokens such as Ethena (ENA) and Hyperliquid (HYPE) losing 5%–6%, while $717 million in liquidations intensified downside momentum.

The U.S. Dollar Index (DXY) climbed to 101.15, its highest level since May 2025.

Derivatives signal rising bearish positioning

Open interest in SpaceX perpetual futures on Hyperliquid, Binance, and other venues rose about 10% despite a roughly 15% price decline, suggesting increased short exposure. The contracts are now the sixth-largest globally, ahead of several major crypto assets including ZEC.

XRP futures open interest rose to 2.38 billion tokens even as prices weakened, but negative OI-adjusted cumulative volume delta (CVD) for a second straight day points to aggressive taker-driven selling.

Bitcoin futures open interest eased to 720,000 BTC from 742,000 BTC last week, down from a recent peak near 800,000 BTC. Ether futures OI recovered slightly to 14.13 million ETH but remains below late-May highs.

Across major tokens, negative CVD readings indicate broad seller dominance.

Volatility measures also moved higher, with Bitcoin’s 30-day implied volatility index rising from around 40%, typically reflecting increased hedging demand and bearish momentum.

In options markets, positioning remains skewed toward long calls ahead of Friday’s expiry, though many are now underwater after the recent decline. Put options are increasingly profitable, while put-call skews continue to reflect demand for downside protection.

Token performance

Privacy coins showed relative stability, with Dash (DASH) down 0.2% and Monero (XMR) slipping 0.7%.

Zcash (ZEC) fell 4.2%, underperforming alongside broader altcoin weakness following recent AI-related concerns.

AI-linked tokens including Fetch.ai (FET), Render (RENDER), and Bittensor (TAO) declined 3%–5% as negative sentiment from tech markets spilled into crypto.

The average crypto RSI near 39 suggests oversold conditions, leaving room for a potential short-term bounce or relief rally.