Bitcoin Steadies Near $64K as Traders Await CPI Amid Harmony Exploit Fallout

Markets were largely rangebound ahead of the July U.S. CPI release, with bitcoin holding near $64,000, oil trading around $90 a barrel and Harmony facing the fallout from a fresh exploit.

Crypto trading remained subdued Wednesday as investors evaluated the Harmony breach while awaiting U.S. inflation data, which could provide a fresh signal for the direction of risk assets.

Harmony, a layer-1 blockchain built for DeFi protocols and marketplaces, said its network was compromised during the early Asian session. The attacker created an estimated 4 billion ONE tokens using empty blocks, equivalent to about 26% of the circulating supply.

Roughly 2.8 billion of the newly generated tokens were subsequently sent to exchanges, causing ONE to plunge as much as 40% and reach a new record low.

Financial markets broadly remained quiet before the July CPI figures were due at 12:30 UTC. Brent crude was close to $90 per barrel after renewed Houthi attacks on shipping near the Bab el-Mandeb Strait and a U.S. strike on a vessel in the Gulf of Oman revived concerns about disruptions to oil supplies.

Bitcoin showed limited reaction, gaining 0.23% since midnight UTC to around $63,900. The Fear and Greed Index stood at 38.

Derivatives Positioning

Futures markets are steady, but traders are becoming more bearish:
Total crypto futures volume and open interest have barely changed, giving the appearance of a stable market. However, taker positioning has shifted toward the bearish side, with shorts accounting for 51.36% of market-order activity. This reverses the bullish positioning seen earlier in the week.

AVAX attracts aggressive short sellers:
Avalanche’s AVAX was among the weakest major tokens over the past 24 hours, despite a 6% increase in open interest. Falling prices combined with rising OI point to strengthening bearish conviction. Its negative 24-hour CVD was also the weakest among major assets, indicating that traders are using aggressive market orders to build short positions.

DOGE leverage reaches its highest level since October:
Dogecoin futures open interest has climbed beyond 17.2 billion tokens, up sharply from about 12 billion in June. The increase has occurred while DOGE remains close to $0.07. Such a buildup of leverage during sideways trading could set the stage for a major price swing.

BTC and ETH remain lightly positioned:
Open interest across the two largest cryptocurrencies remains relatively subdued. Bitcoin OI is below 750,000 BTC, extending several weeks of limited momentum. Ether is showing a similar trend, suggesting traders are maintaining a cautious stance toward the largest crypto assets.

Selling dominates the broader altcoin market:
Most of the 25 biggest cryptocurrencies recorded negative 24-hour CVD readings, pointing to widespread selling pressure. Chainlink, Cronos and Tron were notable exceptions, showing comparatively stronger buying activity.

Options markets remain calm before the inflation report:
Bitcoin’s 30-day implied volatility measure, BVIV, has slipped to 37.5% from Monday’s 38.66% high. One-week implied volatility is also low, indicating that options traders are not expecting an especially large move after the CPI release. The subdued pricing could mean event risk is being underestimated.

$70,000 bitcoin call remains popular:
The $70,000 BTC call was the most actively traded bitcoin options contract on Deribit for a second consecutive day. At the same time, traders have shown increased interest in strangles, which combine calls and puts and allow investors to position for a sharp move in either direction.

Token Activity

CRV continues to outperform:
Curve’s CRV has gained roughly 35% over the past week and is trading around $0.28. The rally coincides with an upcoming 15% reduction in annual emissions. CRV has risen more than 3% since midnight UTC.

UNI suffers a steep selloff:
Uniswap’s UNI fell more than 10% over the past 24 hours without an identifiable catalyst. The decline highlights the sensitivity of altcoins to abrupt moves when market liquidity and depth are limited.

XMR fully recovers Tuesday’s decline:
Monero’s XMR has gained 5.8% since midnight UTC, erasing all of the losses recorded during Tuesday’s session.

AI tokens turn positive:
NEAR, FET and TAO posted gains of between 1.3% and 2.3%. The recovery suggests investor interest in AI-related crypto assets may be picking up again after months of weaker market sentiment.