Bitcoin nears 2024 lows as options traders pay up for downside protection
Key takeaways
- It now trades at $59,250, looking set to challenge the weekend lows of $58,800.
- Both assets are now testing critical multiyear support levels.
- The altcoin market saw exaggerated downside on Tuesday, with DeFi tokens ethena (ENA), jupiter (JUP) and ether.fi (ETHFI) all falling between 3.3% and 7.5% as risk appetite continues to wane.
BTC puts continued trading at a double-digit premium to calls, signaling demand for downside protection even though volatility indexes are subdued.A handful of tokens are bucking the trend, with stellar (XLM) holding gains from DTCC's Stellar integration news and lighter (LIT) up 23% over the past week on similarities to the outperforming HYPE token.Bitcoin BTC$59,293.33 fell 1.5% on Tuesday after failing to hold above $60,000 on Monday. It now trades at $59,250, looking set to challenge the weekend lows of $58,800. Ether (ETH) is down by 1.73% since midnight UTC, trading at $1,580 after failing to break through $1,640.
Both assets are now testing critical multiyear support levels. Ether has bounced from this level twice before, in April 2025 and October 2023, while bitcoin is trading around its lowest point since late 2024. A failure to hold would leave both tokens without an obvious floor.
The altcoin market saw exaggerated downside on Tuesday, with DeFi tokens ethena (ENA), jupiter (JUP) and ether.fi (ETHFI) all falling between 3.3% and 7.5% as risk appetite continues to wane.