Analysis: The crypto derivatives market is turning bearish; if Bitcoin falls below $60,000 or leads to a larger-scale liquidation, it could intensify the situation.

BlockBeats News, June 4 — On Thursday, the crypto market saw another round of selling and liquidations. Bitcoin briefly fell to $61,300, before rebounding to $64,680, and is currently temporarily quoted at around $62,500. Over the past two days, the total leverage liquidation across the whole market has been about $3 billion. Data shows that in the past 24 hours, futures trading volume rose to $305 billion, but open interest fell by 8.5% to $111.4 billion, indicating that the market is mainly de-leveraging rather than adding new positions. Bitcoin open interest fell from yesterday’s historical high of over 800,000 BTC to 766,000 BTC.

It appears that investors are pulling away from the crypto market and shifting toward the AI narrative in traditional markets. The derivatives market has clearly turned bearish. Both BTC and ETH put option skews have strengthened, showing that investors are willing to pay higher premiums for downside protection. On Deribit, the notional open interest of BTC put options with a strike price of $60,000 exceeds $1 billion, and the most actively traded option contract in the past 24 hours is the $55,000 put option.

Altcoins have fallen even more sharply. NEAR, ZEC, JUP, DASH, ENA, and FET are all down more than 10%, and HYPE has retreated 12% after setting a new high this week. The subsequent trend of altcoins depends largely on whether Bitcoin can hold $60,000. If it breaks below that level, it may trigger more liquidations and put greater pressure on less liquid altcoin trading pairs.