Core Insights - Major cryptocurrencies, including Bitcoin, XRP, and Solana, have experienced a decline of over 1.5% in the past 24 hours, with all 16 CoinDesk sectoral indexes in the red, particularly the DeFi Select Index which dropped by 3.6% [1] - Analysts are questioning whether the early-year rally was due to genuine conviction buying or seasonal factors, as evidenced by the inflows and subsequent losses in U.S.-listed spot Bitcoin ETFs [2] - The recent pullback indicates the fragility of the rally, with price movements sensitive to liquidity shifts rather than strong conviction buying [3] Market Indicators - The Coinbase Premium, which reflects U.S. investor demand, remains negative, suggesting that U.S. investors have not yet participated in the rally despite the end of tax-related selling [4] - Positive signs for bulls include a rise in cumulative crypto futures open interest to its highest level in nearly two months, indicating renewed investor risk appetite [5] - Funding rates for perpetual futures tied to cryptocurrencies are improving, which historically supports sustained market advances when rates hold above approximately 0.01% [6] External Influences - Japanese government bond yields have reached record highs, raising concerns about their impact on risk assets, including Bitcoin, which may be influenced by potential churn in Japanese markets [6] - Bitcoin's correlation with the Japanese yen has strengthened, suggesting that fluctuations in Japanese markets could affect cryptocurrency prices [7] - Upcoming economic data releases, such as the ADP Employment report and ISM non-manufacturing data, could contribute to market volatility [7]

Market Trends - Perpetual open interest for Bitcoin increased from 304 thousand BTC to 310 thousand BTC [1] - Funding rates for Bitcoin rose from 004% to 009% [1] Investment Activity - The increase in funding rates suggests a new accumulation of leveraged long positions in the Bitcoin market [1]

Market Trends & Protocol Performance - Ethena is trading 20 cents below the $0.29 institutions paid in September's data round [1] - Protocol generates $365 million annually at a 4.3x price-to-sales (P/S) ratio [1] - Jupiter is launching JUPUSD next week, backed by USDE to 5 million users [1] - Hyena on Hyperliquid reached $130 million in volume within 4 days [1] Stablecoin & Funding - MegaETH is using USDE for their L1 stablecoin [1] - Berachain's Honey is 100% backed by USDE [1] - Funding rates are turning positive again [1] Institutional Investment - Institutions typically do not buy 45% above spot price only to lose money [1]

RT Santiment (@santimentfeed)😮 Bitcoin saw an enormous jump to ~$90,087 on @coinbase 2 hours ago before quickly sliding back to its current ~$86,580 market value. Bitcoin’s rising positive funding rates on exchanges signals more leveraged long positions, which historically has led to sharp liquidations and higher volatility, including recent tops and pullbacks.📊 Ethereum contrasts this trend, with shorts outweighing longs for now, suggesting weaker bullish conviction and less risk dynamics than $BTC. But al ...

😮 Bitcoin saw an enormous jump to ~$90,087 on @coinbase 2 hours ago before quickly sliding back to its current ~$86,580 market value. Bitcoin’s rising positive funding rates on exchanges signals more leveraged long positions, which historically has led to sharp liquidations and higher volatility, including recent tops and pullbacks.📊 Ethereum contrasts this trend, with shorts outweighing longs for now, suggesting weaker bullish conviction and less risk dynamics than $BTC. But all assets will still move with ...

Ethena Token Distribution and Deposit - Ethena 团队于 12 月 9 日分发了价值 688 万美元的代币，并立即存入 Bybit 交易所 [1] USDe TVL and Funding Rates - USDe 的总锁定价值 (TVL) 在两个月内从 148 亿美元暴跌至 67 亿美元 [1] - 19% 收益率的资金费率已降至 4% [1] Whale Accumulation - 一个钱包在市场动荡期间积累了价值 2.13 亿美元的 7.8 亿枚 ENA 代币 [1] Team Activity - 团队退出，巨鲸进入 [1]

Market Trends - XRP futures open interest decreased by 59% from 17 billion to 7 billion XRP since early October [1] - Funding rates declined from approximately 001% to 0001% [1] Speculative Appetite - A structural pause in speculative appetite was observed [1]

Coinbase Bitcoin Premium. Photo by BeInCrypto Bitcoin’s most important reversal signal may finally be forming. After three weeks of relentless sell pressure from US spot markets and record ETF outflows, a rare cluster of metrics is shifting in unison. The Coinbase Premium is recovering, whales are going long aggressively, funding rates have flipped negative, and fresh ETF inflows have reappeared. Analysts say it is the first coordinated improvement in Bitcoin’s market structure since early November. US S ...

Market Trends - Bitcoin dipped to approximately $89,000 [1] - Futures premium and funding rates remain steady [1] Derivatives Market - Futures traders are not showing signs of concern despite the Bitcoin dip [1]

Core Insights - Ethereum traders are engaging in FOMO trading, leading to predictable price patterns that align with extreme funding rates [1][2] - The funding rate cycle shows that negative funding rates coincide with local price bottoms, while positive rates align with local tops [1][2] Funding Rate Dynamics - In early September, Ethereum's funding rate turned negative, marking a local price bottom as it fell from $4,900 to $4,500, with long liquidations dominating [1] - By September 12, Ethereum rebounded 11.5% to $4,700, liquidating short sellers and pushing funding rates into positive territory, indicating a local top [2] - A similar pattern was observed on October 30, when Ethereum dipped to $3,800, leading to approximately $954 million in long liquidations [2] Market Behavior and Volatility - Emotional and short-term trading is prevalent, with traders aggressively going long during minor rallies and short during brief pullbacks, amplifying market volatility [3] - The derivatives market for Ethereum is showing signs of stress, with rising open interest despite declining prices [3][4] Market Outlook - The current market setup suggests that leverage is sustaining prices more than genuine buying demand, leaving the market vulnerable to sharp declines if momentum does not shift [4] - In the short term, Ethereum is expected to remain range-bound with a bearish bias unless there is a reset in funding and positioning [4] - Medium-term volatility is anticipated due to geopolitical and macroeconomic factors, while long-term outlook remains bullish amid an improving macro backdrop [4] Market Sentiment - Users on the prediction market Myriad are cautiously optimistic, estimating a 61% chance that Ethereum will move to $4,500 rather than $3,100 [5] - Currently, Ethereum is trading at $3,834, down 1.5% over the past 24 hours, recovering from an intraday low of $3,687 [5]