Bearish Signals Align: Bitcoin Put Demand Surges at $50K, Gold Flashes Death Cross

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Bitcoin options activity and a surge in gold open interest suggest traders are positioning for further downside rather than a sustained rebound.

Bitcoin (BTC) rose 0.3% to around $58,700 on Wednesday after briefly sliding to $57,700 shortly after midnight UTC—its lowest level since September 2024.

Ether (ETH) hovered near $1,580, also staging a modest recovery following early weakness.

U.S. equity futures moved lower overnight, with S&P 500 and Nasdaq 100 contracts down roughly 0.2% to 0.4%.

Risk assets, including cryptocurrencies and tech stocks, have struggled in recent weeks as inflation concerns strengthen the U.S. dollar and curb risk appetite.

Altcoins have been hit hardest, with thinner liquidity amplifying declines and triggering waves of liquidations.

Derivatives positioning

About $395 million in crypto futures positions were liquidated over the past 24 hours, with long positions accounting for the majority of losses after bitcoin slipped below $58,000 earlier in the session.

Crude futures on crypto exchanges saw roughly $15 million in liquidations, ranking among the highest across assets and highlighting growing participation in traditional markets on digital platforms.

Bitcoin futures open interest increased to 768,000 BTC from 740,000 BTC a day earlier, signaling fresh inflows but mixed sentiment. Funding rates near 5% point to a mild bullish bias, while a negative cumulative volume delta suggests sellers remain more aggressive.

Gold perpetual futures open interest climbed to a record 222,000 XAU tokens, even as spot prices flash a bearish “death cross,” with the 50-day moving average falling below the 200-day. Similar signals are emerging across major gold ETFs.

Bitcoin and ether’s 30-day implied volatility indices have stabilized after June’s sharp gains. Bitcoin’s BVIV index is currently capped by its 200-day moving average and supported by the 50-day; a breakout above resistance could trigger renewed volatility and deeper downside.

On Deribit, bitcoin and ether puts continue to trade at a premium to calls across maturities, reflecting sustained demand for downside protection.

At OTC desk Paradigm, traders showed interest in September bitcoin puts at the $50,000 strike, indicating expectations of a possible move below that level by the end of Q3. Meanwhile, a bullish bet appeared in Solana, with a call option at the $86 strike purchased while the token trades near $75.

Token highlights

While the broader altcoin market remains under pressure, Solana-based DeFi token Jupiter (JUP) has bucked the trend, gaining 11% since midnight UTC alongside a 55% surge in trading volume.

The move coincides with a rise in total value locked, which has climbed to over 20 million SOL from 13.9 million in May. The protocol operates as a decentralized exchange aggregator.

Stellar (XLM) also extended gains, rising from $0.168 on Sunday to $0.196—up about 17%.

These isolated gains have helped keep CoinMarketCap’s “Altcoin Season” index near 48/100, even as broader weakness persists.

AI-related tokens continue to lag, with Bittensor (TAO) down 2.5% on the day and more than 30% since mid-June.