Weekend Altcoin Surge Fizzles as Bitcoin Turns Lower

Bitcoin started the week lower as the strong altcoin gains seen over the weekend began to lose momentum. BTC was down about 1.1% since midnight UTC, while Nasdaq 100 futures were up 0.3%.

The leading cryptocurrency traded near $79,300, marking a 1.3% decline from midnight UTC. Bitcoin spent much of the weekend moving sideways after failing to push through resistance around $81,400.

The early-week weakness came as U.S. equity futures strengthened, with Nasdaq 100 futures rising 0.3%. U.S. stock markets were closed Monday for the Labor Day holiday.

Altcoins had been responsible for much of the weekend’s advance, but several began surrendering part of those gains. TAO, KAS, ICP and TIA were each more than 12% higher over 24 hours, although most of their gains came before midnight UTC. Since then, TAO has risen 0.4%, LINK has gained 1% and NEAR has fallen 1.5%.

Derivatives Show a More Defensive Market

Positioning in crypto derivatives has shifted toward the bearish side. Taker sell orders represented 51.6% of trading flow, reversing the bullish balance recorded Friday.

The change comes amid renewed concerns surrounding U.S.-Iran tensions and expectations that the Federal Reserve could keep rates higher. However, some of those concerns may already be reflected in market positioning.

Bitcoin futures open interest has dropped to about 670,000 BTC from 709,000 BTC on Friday, reaching its lowest level since March 23, according to CoinGlass. Perpetual futures funding rates have also moved close to zero after previously signaling strong bullish demand, with annualized rates reaching 8%-10%.

Ether and Solana derivatives markets have displayed similar shifts in positioning.

XRP futures open interest has declined to 2.29 billion tokens, its lowest level since Aug. 7. That compares with a mid-August high of 2.78 billion tokens. XRP has consequently remained volatile within the $1.35-$1.45 range.

WLD is showing stronger momentum. Its open interest has increased 11% alongside a 13% rise in the spot price, a combination that typically supports the strength of an uptrend. WLD also recorded the highest 24-hour OI-adjusted CVD among smaller tokens, pointing to stronger aggressive buying.

CVD readings are mixed across major assets. LINK, TRX, CC, SUI and ZEC are showing positive buying pressure, while BTC, ETH, XRP, SOL, NEAR, XMR and ADA are recording negative readings.

Options markets are also pricing in relatively subdued volatility. Thirty-day implied volatility for BTC and ETH remains close to recent lows, suggesting traders are not anticipating an immediate surge in market turbulence.

Bitcoin options on Deribit show notable demand for downside protection. The $78,000 and $80,000 puts expiring Sept. 25 were the two most popular BTC contracts, while three of the other five most active contracts were calls. Ether options showed the opposite pattern, with calls dominating activity.

Altcoins Lead Individual Movers

TAO climbed 13% over 24 hours to $266 on trading volume of $568 million. Its momentum has slowed sharply since midnight UTC, however, with the token gaining just 0.4%. TAO remains 16.4% higher over the past week.

JUP fell 9% to $0.2514 without an obvious catalyst behind the move. The token has remained under pressure since losing the $0.33 support level last November.

KAS advanced 12.75% over 24 hours and 24.8% over seven days to 3.418 cents. Its rally, however, is occurring on relatively light volume of $17.6 million compared with a market capitalization of roughly $947 million.

DASH declined 5.3% since midnight to $67.56 but is still up 63% over the past week. ZEC slipped 1.74% to $1,206, while XMR was largely unchanged.

ARB dropped more than 10% over 24 hours to 17.17 cents after nearly doubling during the previous week, making it the weakest performer among liquid mid-cap tokens.

LINK was among the stronger major altcoins, rising 1% since midnight to $13.37. The token is up 18.6% over the past seven days.