Investors are adjusting their positions ahead of major U.S. bank earnings due later today and Wednesday’s consumer inflation report, with both events expected to influence market sentiment.
South Korea’s benchmark stock index plunged 5.5% on Tuesday, leaving it approximately 38% below its record high reached in June. Cryptocurrency markets also experienced significant volatility. Bitcoin (BTC) dropped below $81,000 before recovering to above $84,000 and settling slightly above $83,000. Ether (ETH) fell to an intraday low of $2,400.
The selloff across Asian markets was driven by growing concerns about AI-related investments. Broadcom’s CEO described current AI investing as “casino-like,” undermining investor confidence, while reported progress in memory-chip technology at China’s CXMT intensified fears of increased competition for established semiconductor manufacturers.
Samsung Electronics (005930) and SK Hynix (00060) were among the biggest decliners, falling 7% and 10%, respectively.
Market participants are also preparing for Wednesday’s U.S. Consumer Price Index (CPI) report, which could trigger further volatility. Headline inflation is expected to reach 3.6% year over year, while core inflation is forecast at 2.5%. If headline CPI matches expectations, it would accelerate from the previous month’s 3.4%.
Meanwhile, the third-quarter corporate earnings season is gaining momentum. JPMorgan Chase (JPM), Goldman Sachs (GS) and Citigroup (C) are scheduled to release results later today, providing fresh insight into consumer spending, lending conditions and broader corporate activity.
Derivatives positioning
Futures trading is intensifying as traders exit leveraged positions. Twenty-four-hour futures volume climbed 66%, reaching $212 billion compared with $126 billion the previous day. Open interest (OI), which measures the dollar value of outstanding contracts, declined 1.58% to $143.4 billion. Liquidations surged 284% to $813 million. The combination of rising volume, falling OI and increased forced closures suggests leverage is being removed from the market rather than added.
Aggressive sellers retain a narrow advantage. The 24-hour taker buy/sell volume ratio shifted to 48% buyers and 52% sellers, reversing the previous day’s split of 52% to 48% in favor of buyers. Taker volume reflects trades executed immediately at available prices, offering insight into which side is more aggressive. Buyers are closer to parity but have yet to regain control.
SPCX and SNDK lead trading activity among crypto-platform futures tied to traditional assets. Both contracts ranked as the most actively traded over the past 24 hours. CoinGlass data showed trading volume rising 700% for SPCX and 271% for SNDK. However, open interest in each remains below $1 billion, considerably smaller than that of major cryptocurrency contracts. The volume surge appears to reflect rapid turnover rather than a substantial buildup of positions.
SNDK open interest is increasing despite a falling price. Open interest rose nearly 9% while the contract price dropped 7%. Because OI is denominated in dollars, the price decline automatically reduces its reported value. Adjusting for that effect suggests the number of outstanding contracts increased by roughly 17%. This points to new positions entering a declining market, potentially reflecting fresh short bets, although some traders may be buying the dip.
SK Hynix contracts show a similar pattern amid weakness in South Korean equities. Open interest increased 18% as the price fell 8%, implying that the number of outstanding contracts rose by approximately 28%. The figures indicate that risk-off sentiment in South Korea’s stock market is also being reflected in on-chain derivatives trading.
Bitcoin and ether futures continue to shed leverage. Open interest in both assets fell by at least 2% over 24 hours, even as prices remained broadly flat to negative. Since lower prices also reduce dollar-denominated OI, the actual decline in the number of outstanding contracts is smaller than the headline percentage. Nevertheless, positions are still being withdrawn. XRP, SOL and HYPE have experienced similar reductions.
ZEC and NEAR are seeing open interest decline alongside prices. ZEC fell more than 7% over 24 hours, while OI dropped 11%, implying an approximately 4% reduction in outstanding contracts after accounting for the price move. The previous day, OI had risen 7% as the price gained 6%, representing only about a 1% increase in contracts. The current reversal is therefore more pronounced than the earlier buildup. NEAR is displaying a comparable trend.
Annualized funding rates for ZEC and NEAR remain positive at around 7%, although ZEC’s rate has fallen from 10% the previous day. Positive funding means long-position holders continue paying shorts. Meanwhile, OI-adjusted cumulative volume delta (CVD), which tracks the balance between aggressive buying and selling, is negative for both assets.
SUI is experiencing particularly strong selling pressure. It has the most negative CVD reading, leading the broader selling trend across major cryptocurrencies, including Bitcoin and Ether. NEAR, which recorded the second-most positive reading the previous day, has also reversed direction. Aggressive selling is widespread, while annualized perpetual funding rates have dropped to minus 30% or lower. Negative funding means short traders pay long holders. Although this reflects heavy bearish positioning, a crowded short trade can reverse sharply if prices begin rising.
Options markets remain relatively calm despite the liquidation spike. Implied volatility indexes for Bitcoin and Ether are holding near their year-to-date lows, suggesting options traders are not anticipating a major increase in price swings. Implied volatility represents the market’s estimate of future price fluctuations.
Bitcoin traders continue to favor downside protection. Put options have dominated the most-traded BTC options for a second consecutive day. Puts generally increase in value when the underlying asset declines, so the activity suggests continued hedging against further losses. Ether options flows are more mixed, but the $2,500 put expiring on Oct. 16 leads trading by a wide margin over the second- and third-most-active contracts.
Token developments
Starknet (STRK) dropped more than 17% over 24 hours to approximately $0.08, reversing part of a rally that had nearly doubled its value. The earlier gains came as the network considered moving away from Ethereum to become an independent, quantum-resistant layer-1 blockchain.
LayerZero (ZRO) also retreated from its recent rally, losing 14%. STRK and ZRO were the two worst-performing tokens among the top 100 cryptocurrencies by market capitalization, while NEAR fell 11%, indicating that selling pressure has spread beyond recent outperformers.
Blur (BLUR) plunged 33% after the NFT marketplace announced plans to shut down its website interface and discontinue the matching of new Blend loans on Nov. 12. Its underlying marketplace contracts will continue operating, and BLUR holders will retain governance rights over the protocol’s fee switch.
Autheo (THEO) crashed 92% following a suspected exploit involving Base. Blockchain security firm PeckShield reported that an attacker minted 19 million tokens without authorization, exchanged them for 700 ETH worth approximately $1.76 million, and bridged the proceeds to Ethereum.
Stacks (STX) moved against the broader market decline, gaining 11.4%. The advance came as the network continued expanding its Bitcoin-staking program.
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