Cryptocurrency markets see shifting volatility and rising altcoin leverage

The cryptocurrency market is experiencing significant shifts in volatility and trader positioning. Bitcoin's 30-day realized volatility has dropped to the 1.5th percentile of its history, driven largely by long-term holders absorbing supply. While Bitcoin faces resistance near the $80,000 mark, derivatives markets show a bullish tilt as call options become more expensive than puts, and US spot Bitcoin ETFs saw weekly net inflows of $681.2 million.

Simultaneously, altcoin open interest in perpetual futures has surpassed Bitcoin's for the first time since December 2024. This shift is led by assets like Zcash, which saw record open interest of $2.4 billion. Other market movements include EDGE facing supply pressure from a $2.27 million KuCoin deposit, though this was partially offset by a three-day streak of exchange outflows. In the Bitcoin derivatives space, recent liquidations saw approximately $453 million in long positions flushed during a price retest.