BTC Reclaims $110K as Softer CPI Boosts Market Sentiment, Altcoins Lag

The crypto market was buoyed by a softer than expected CPI print, with bitcoin BTC$110,077.05 rising back above $110,000 as ether ETH$3,895.63 moves back towards $4,000.

Positive investor sentiment appears to be strongly aligned with bitcoin, with CoinMarketCap’s “altcoin season” indicator hitting its lowest level in more than 90 days, as bitcoin dominance continues to rise.

Derivatives Positioning

By Jacob Joseph

• Bitcoin’s 30-day implied volatility, as measured by Volmex’s BVIV index, has eased to 45% from 52% over two days, partially retracing the spike experienced on October 10. This decline signals a soothing of market anxiety alongside a similar reset on Wall Street.
• Options data from Deribit show that BTC’s seven-day volatility risk premium (VRP) has flipped negative, a sign of renewed calm.
• Dealer gamma profile points to positive gamma buildup from $112K to $120K strikes. It means dealers trade against the market in this range, arresting price volatility.
• Broadly speaking, BTC puts continue to trade at a premium to calls across all tenors, reflecting persistent downside fears and call overwriting, especially at the long-end of the curve.
• ETH options exhibit bullishness beyond the December expiry.
• Open interest (OI) in perpetual futures tied to most major tokens has increased in the past 24 hours. Leading the pack are PUMP futures, with an OI gain of over 14%. Strong capital inflows in non-serious tokens often precedes market corrections.
• Funding rates for TRX, ZEC have turned slightly negative, indicating a bias for bearish short positions. In ZEC’s case, traders with long exposure in the spot market could be hedging the same with short futures bets.

Token Talk

By Oliver Knight

• CoinMarketCap’s “altcoin season” index has slumped below 25/100 for the first time in the past 90 days, as it edges into “bitcoin season.”
• The fall reflects worsening sentiment across the altcoin market, with assets like FET, 2Z, BONK and WIF all losing more than 50% of their value over the past three months.
• Bitcoin dominance has also crept up from 57% to 59% since Sep. 13, a sign that investors are avoiding speculative altcoin bets in favor of bitcoin, which has stubbornly held between $100,000 and 126,000 since July.
• Altcoins, meanwhile, fell victim to a liquidation cascade earlier this month as a sell-off prompted exaggerated drawdowns, wiping order book liquidity in the process.
• While some have recovered from the sell-off, many remain at critical levels of support to create a bearish market structure.
• This is in spite of a wave of digital asset treasury companies (DATs) investing in altcoins throughout 2025, with a lack of retail demand failing to sustain consistent momentum.