Bitcoin and ether slipped toward important technical support levels on Tuesday, while DeFi-related tokens led broader losses. In contrast, XLM and LIT managed to outperform the wider market despite the bearish tone.
Bitcoin (BTC) dropped 1.5% on Tuesday after failing to hold above $60,000 on Monday. It is now trading near $59,250 and appears to be heading back toward weekend lows around $58,800. Ether (ETH) fell 1.73% from midnight UTC, changing hands near $1,580 after repeatedly failing to break resistance at $1,640.
Both major assets are now testing significant multi-year support zones. Ether has previously rebounded from this level in October 2023 and April 2025, while Bitcoin is hovering near its lowest levels since late 2024. A breakdown from these levels could leave both assets without a clear support floor.
Altcoins saw sharper declines, particularly within DeFi, where tokens such as Ethena (ENA), Jupiter (JUP), and Ether.fi (ETHFI) dropped between 3.3% and 7.5% as risk appetite weakened further.
This weakness contrasts with relatively stable traditional markets, where U.S. equity futures were slightly higher, with the S&P 500 and Nasdaq 100 both edging up around 0.03%. The U.S. Dollar Index (DXY) also rose 0.25%.
In derivatives markets, Hyperliquid’s native token (HYPE) stood out, gaining more than 4.3% over the past 24 hours and remaining the only major token in positive territory. The move appears spot-driven, with futures open interest steady at around 40 million tokens since June 22. Despite muted activity, positioning still leans bullish, with funding rates near 10%, indicating perpetual futures trading above spot.
Dogecoin (DOGE) saw the largest increase in open interest among major assets, rising to 16 billion tokens—its highest level since the October 10 crash and up from 13 billion a day earlier. However, the flow data suggests bearish positioning, with negative funding rates and negative 24-hour OI-adjusted CVD pointing to aggressive selling pressure.
Across major futures markets, Bitcoin, Ether, and XRP show little change in positioning, while Solana (SOL) remains highly positioned with open interest near record levels, signaling potential for heightened volatility ahead.
Volatility indicators continue to reflect a calm market environment. Bitcoin’s 30-day implied volatility (BVIV) fell 11% to 44% and has remained stable around that level, while Ether’s volatility index (EVIV) shows a similar trend.
On Deribit, Bitcoin puts continue to trade at a premium of over 10% versus calls across all maturities, signaling persistent downside demand. Ether options show a similar short-term bias, with weekly puts more expensive than calls, although longer-dated contracts are more balanced.
Options flow also included a Bitcoin short straddle trade, a strategy typically used when traders expect low volatility and range-bound price action.
Among tokens, DeFi assets broadly weakened, while AI-related tokens like FET, TAO, and RENDER also declined. Privacy coins ZEC and XMR came under pressure as well.
Even Hyperliquid (HYPE), which has recently outperformed, eased about 2.2% to $65.3, suggesting a consolidation phase following its recent rally rather than a sharp reversal.
In contrast, Stellar Lumens (XLM) gained ground after news that the DTCC plans to integrate its tokenized securities platform with the Stellar network by 2027, fueling continued optimism following a strong rally in May.
Another standout was Lighter (LIT), which has benefited from growing interest in decentralized perpetual exchanges. The token has risen 23% over the past week, including strong double-digit gains in the last 24 hours.
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