Bitcoin shed around 2% during the U.S. overnight session on July 28 as South Korea’s Kospi stock index plunged 11%, marking one of its worst single-day declines in years. The move rippled across global risk assets, with ether falling 0.56% to trade near $1,880, below the $2,000 psychological level.
Chipmaking stocks tumbled in South Korea, dragging the broader Kospi lower. The selloff sent shockwaves through crypto markets, where AI and layer-1 tokens absorbed the heaviest losses. FET fell 9.48% over 24 hours, while NEAR, HYPE, and WLD shed between 8% and 9%.
Futures positioning flips bearish
Taker long/short volume in futures reversed course, with shorts now at 51.5% of activity, a complete turnaround from recent bullish bias. XRP’s futures open interest rose nearly 6% from a day earlier to 2.35 billion, even as most other major contracts held steady. Futures linked to SHIB, AVAX, LINK, and DOGE saw open interest decline.
The 24-hour open interest-adjusted cumulative volume delta turned negative for the first time in at least three weeks across the top 25 coins, signaling a shift in aggregate leverage positioning.
Regulatory delay compounds pressure
The U.S. Senate shelved the Crypto Clarity Act to prioritize a Russia sanctions bill and federal nominations. Two weeks of floor time remain before the Senate’s Aug. 8 summer recess begins. A key unresolved dispute over restrictions on government officials’ crypto holdings has stalled the bill’s advance.
Traditional markets broadly declined alongside crypto. The Nasdaq 100 index futures fell 0.70%, gold shed 0.93%, and silver dropped 1.50%. The Fed’s interest-rate decision, scheduled for Wednesday, and the Senate’s remaining floor time loom as potential catalysts this week.
Volatility signals remain muted
Despite the price weakness, volatility surfaces do not show traders pricing genuine stress. The 30-day implied volatility indexes for major contracts remain near recent lows, suggesting limited fear premium in options markets.
Lighter defended its $2.10 support level for the third time this month, rising 3.97% to $2.21. MORPHO gained 1.54% and ethena rose 1.46%, bucking the broader downtrend. CoinMarketCap’s “Altcoin Season” indicator hovered at 53 out of 100, down slightly from Monday but higher than the majority of July readings.
