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Crypto dipped lower yesterday as more than 100m worth of BTC and ETH positions were liquidated across exchanges. However, both are still trading comfortably above their key support levels (95k and 3200).

Even with the retracement over the weekend, backend vols remain relatively elevated. The market seems to be expecting BTC to trade sideways until December as attention shifts towards ETH in the near term. ETH risk reversals remain heavily skewed in favor of frontend Calls, while BTC Calls seem to be more bid only from 27DEC24 onwards, driven by the potential impact of Trump’s pro-crypto policies which are only likely to take effect later next year.

As we mentioned last week, there could be a gradual rotation from BTC to ETH and other alts if BTC keeps rejecting 100k. In fact we are already starting to see this play out as BTC dominance dropped from 62% to 59% over the past week.

Despite consistently strong spot ETF inflows and impressive IBIT options skewed in favor of Calls, BTC seems to be fighting an uphill battle given the huge 100k sell wall. So will it reach its 100k milestone any time soon or will attention gradually shift to alts?

Just today, Michael Saylor hinted at purchasing even more BTC. MicroStrategy’s purchases definitely fueled BTC’s post-election breakout so the market is surely waiting to see if another purchase will take BTC to six-digits. If it does, we wouldn’t be surprised to see BTC squeeze higher and altcoins to take the backseat for a little longer.

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Disclosure: The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.