Bitcoin Market Share Dips Amid Hyperliquid’s Record $3.4B Volume Spike

Crypto Markets Struggle Despite Powell Boost; Ether Derivatives Surge to New Highs

Bitcoin Slides Back to Pre-Powell Levels as Bearish Sentiment Builds

Bitcoin has given up gains sparked by Federal Reserve Chair Jerome Powell’s dovish speech, falling back to levels seen before the announcement and reinforcing its bearish technical outlook.

As of writing, BTC trades near $109,644, retreating from Friday’s high of $117,440. If support at $107,500 breaks, further downside is likely, according to chart signals.

Despite the macro optimism, the market’s response has been tepid. Traders appear to be fading rallies rather than chasing them, a classic sign of weak sentiment.

Capital Rotates into Ether as BTC Dominance Drops

Market flows suggest capital is rotating out of Bitcoin and into Ether. BTC dominance has declined from 60% to 57%, reflecting expectations that ETH could outperform, especially if staking-based ETFs receive regulatory approval later this year.

QCP Capital noted in its daily update that positioning shifts indicate large players are increasingly betting on Ether’s strength relative to Bitcoin.

Derivatives Market Shows Diverging Trends

• Bitcoin futures open interest (OI) has increased from 260K BTC to 282K BTC, even as prices fell — a signal of “sell-the-rally” behavior.
• In contrast, Ether’s OI rose with the price rally and has since eased slightly — a pattern seen as a bullish pause, not a bearish reversal.

Most major tokens are seeing positive funding rates, indicating more traders are leaning long, with ADA being the notable exception.

Meanwhile, altcoin futures open interest surged by $9.2B in a single day Friday, pushing the total to a record $61.7B, according to Glassnode. This highlights the growing leverage and volatility centered around altcoins.

Institutional Interest in Ether Options Hits Record Levels

• Ether options open interest on the CME exceeded $1 billion, a new record.
• ETH futures open interest also crossed 2 million ETH, underscoring rising institutional exposure.
• Bitcoin options OI rose to $4.85B, the highest since April.
• On Deribit, BTC options skewed toward puts, while ETH options saw a slight premium on calls — a sign of contrasting sentiment.

Hyperliquid Posts Record Spot Trading Volume

Decentralized exchange Hyperliquid reported a record $3.4B in 24-hour spot volume, including $1.5B in BTC trading. That makes it the second-largest BTC spot venue, ahead of many centralized platforms.

Built on HyperCore (a Layer-1 chain) and HyperEVM, the platform offers sub-second finality and high throughput, attracting institutional and DeFi users alike.

Already dominant in the perpetuals space, capturing 60–70% of DEX market share, Hyperliquid’s expanding spot volumes reinforce its position as a key DeFi liquidity layer.

For HYPE token holders, rising trading volumes translate into token buybacks funded through the platform’s Assistance Fund, tying user activity to long-term value accrual.