Crypto falls on the wave of Asian sell-off: a brief overview of global dynamics

Night trading on Asian exchanges has triggered a new wave of sell-offs in the cryptocurrency markets. Crypto is falling under coordinated pressure, with Bitcoin and altcoins experiencing noticeable downward pressure.

Bitcoin Pullback: Attempts to Break Psychological Level

Bitcoin has dropped to $90.09K, retreating from a local high of $93,750. This is the third unsuccessful attempt in five weeks to break through the $94,500 level. The decline has returned the main cryptocurrency to the December trading range between $85,000 and $94,500 — an area where the price has formed its trading pattern.

The current rebound shows a 24-hour increase of 0.40%, but this does not offset the broader pressure coming from stock markets, where Nasdaq 100 futures have fallen 0.32% since midnight.

Altcoins Lose More: Distribution of Losses

A broad segment of altcoins has faced sharper selling pressure compared to Bitcoin. Interestingly, the last 24 hours have shown a recovery:

• PENGU demonstrates a growth of 0.50%, overcoming a previous decline of 6.5%
• XRP (Ripple) shows positive momentum with a 1.93% increase, recovering after a three-percent decrease
• ZEC (Zcash) is nearly stable at +0.03%, despite a previous drop of 4.5%
• TRX (Tron) continues to grow by 0.94%, confirming its resilience amid overall pressure

The memecoin and privacy coin sectors remain the most vulnerable. The CoinDesk memecoin index has fallen 1.5% — twice as much as the CoinDesk 5 index tracking major assets (BTC, ETH, XRP, SOL, ADA).

Open Interest in Derivatives: Mixed Signals

Exchanges have liquidated positions totaling $465 millions over the past 24 hours, with longs making up more than half of the total volume. This sharply contrasts with the previous two days, when mostly shorts were liquidated.

Notably, the total open interest on global crypto futures exchanges has remained resilient above $143 billion — the highest in two months. Funding remains moderately positive, signaling that bullish sentiment persists despite current price declines.

On CME, Bitcoin futures show growing interest: open interest increased from 100,000 BTC to 111,000 BTC after December 30. However, these positions remain modest compared to last year, when open interest exceeded 191,000 contracts.

On the Deribit platform, put options indicators weaken for both main assets, although clear bullish signals have yet to form. Volatility analysis shows a mixed profile: for Bitcoin, strangle strategies indicate a bullish tilt in volatility, while call spreads anticipate price growth. For Ethereum, the prevailing strategy remains a straddle focusing on volatility.

DeFi Under Pressure: A Ray of Hope

Despite the overall decline in cryptocurrency prices, the decentralized finance ecosystem shows positive signs. Total Value Locked (TVL) in DeFi has increased by 0.17% over the past 24 hours. This is especially significant amid asset pressure — the growth in TVL despite falling prices indicates inflows of new funds, reflecting investor interest in decentralized protocols.

The altcoin season indicator from CoinMarketCap stands at 25 out of 100, slightly down from last week’s 27 but still significantly above the December low of 14 points. This suggests a maintained optimism regarding altcoins over the longer term.

Macroeconomic Background: Inflation as a Hidden Factor

Crypto is falling not only under technical factors. Analysts Adam Posen from the Peterson Institute and Peter R. Orszag from Lazard warn that inflation in the United States could exceed 4% this year. High tariffs, tightening labor markets, potential large-scale deportations of migrants, and significant fiscal deficits could outweigh the positive effects of productivity growth driven by artificial intelligence.

If inflation remains elevated, the Fed will face pressure that prevents aggressive reductions in borrowing costs, unlike expectations in markets and the crypto sector. This could limit the inflow of “cheap money,” which traditionally supports the growth of risk assets.

What’s Next?

The current wave of selling from the Asian region demonstrates that psychological resistance levels remain a powerful factor. However, maintaining open interest at historically high levels, positive inflows into the DeFi ecosystem, and a gradual recovery of altcoins provide grounds for cautious optimism. Investors should monitor both technical resistance levels and macroeconomic indicators that could determine the next market impulse in cryptocurrencies.