By Oliver Knight,Omkar Godbole

Copyright coindesk

The top 20 tokens, except for BTC and HYPE, have seen double-digit declines in futures open interest as the price drops shake out overleveraged bets.

Shorts seem to be stepping in via Binance-listed USDT futures, as OI has increased to 276K BTC from 270K alongside near-zero funding rates in the past couple of hours.

Funding rates in TRX, ADA, LINK, TON, UNI and Binance-listed 1000SHIB futures are notably negative, indicating a bias for bearish, short positions. Funding rates for other majors, including BTC, are flat to slightly positive.

BTC front-month futures on the CME still trade at a roughly $100 premium to the spot price. Traders need to watch out for a potential shift into discount for signs of strengthening of selling pressure.

On Deribit, put premiums relative to calls have spiked, as the price drops bolster demand for downside protection.

Sentiment in the XRP and SOL options has flipped bearish too, aligning with BTC and ETH markets.