Crypto Selloff Deepens

Find out our latest reports, listed below:

• Premia x Block Scholes: Introducing Kyan

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• Bybit x Block Scholes Quarterly Report: Rise of Perp DEXs — and how to catch the opportunity

• How did options markets react to the crypto selloff?

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• Metaplanet Is Selling Vol, Who Is Next?

Market Snapshot: Overnight Moves

Daily Updates:

• The selloff in crypto markets continues to deepen, as BTC fell below $90K for the first time in seven months, further extending the plunge from its ATH of $126K in early October. 
• Over the past 24 hours, BTC is trading 4.65% lower, while ETH once more fell below $3,000 during early Asian trading hours and is down 5.1%. 
• While the recent souring in risk appetite has been most apparent in the crypto market, US equities have also slipped from their recent highs, with the S&P 500 closing 0.92% lower yesterday while the tech-heavy Nasdaq-100 fell 0.83%. 

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• Those downward moves coincide with a continued reassessment of the likelihood of a December rate cut from the Federal Reserve. According to 30-day fed funds futures, the odds of a 25bps cut and a pause are currently close to a coin flip. 
• On Wall Street, the shaky sentiment was also amplified as traders geared up for an announcement from Nvidia on its earnings (due to be released later today). Markets are taking the company’s earnings report as an almost proxy for whether the current AI valuations in the stock market are warranted, or are pointing towards a bubble. Traders are also expecting the September jobs report due on Thursday this week, further adding to the potential for volatility. 

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• We’ve covered in previous commentaries that since the early-October $19B liquidation event, both retail and institutional holders have shown little participation to re-enter the crypto market. Spot Bitcoin ETFs had their fourth consecutive outflow day, selling $254.6M worth of bitcoins yesterday, while retail traders show subdued interest to re-open leveraged perpetual swap contract positions. 
• However, there is one buyer who is breaking his own rule of “buying the top forever” — and that’s Strategy’s Michael Saylor. 
• The company announced yesterday that it was further doubling down on the DAT model that it pioneered, revealing it had bought $835.6M of Bitcoin over the past seven days ending Sunday — marking the firm’s largest purchase since July.

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• In options markets, traders continue to position themselves for a further move to the downside. ATM implied volatility for short-dated ETH options trade at an elevated 80%, keeping the term structure of volatility firmly inverted, while OTM puts briefly commanded a 10 vol point premium to out-the-money calls of a similar moneyness when ETH fell below $3,000 in Asian hours. 
• Additionally, in both BTC and ETH futures markets, futures prices continue to trade below spot price in short-dated exposure, another signal of bearish sentiment.

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• While inflation hawks at the Fed have grabbed much of the attention in the past few weeks, two Fed members said yesterday that the downside risks to employment are increasing. Federal Reserve Vice Chair Philip Jefferson said “I see the balance of risks in the economy as having shifted in recent months with increased downside risks to employment compared to the upside risks to inflation, which have likely declined somewhat recently”. 
• According to Jefferson the lack of progress towards getting inflation towards the 2% goal “appears to be due to tariff effects, with signs that inflation excluding the effects of tariffs may be continuing to make progress toward 2% … A reasonable base case is that tariffs result in a one-time shift in the price level, not an ongoing inflation problem.”
• Fed Governor Christopher Waller, a voting member who is known for his more dovish stance, said in a speech titled ‘The Case for Continuing Rate Cuts’ on Monday that another rate cut would represent good “risk management”. 
• Waller said my “focus is on the labor market, and after months of weakening, it is unlikely that the September jobs report later this week or any other data in the next few weeks would change my view that another cut is in order.”
• Additionally, “With underlying inflation close to the FOMC’s target and evidence of a weak labor market, I support cutting the committee’s policy rate by another 25 basis points at our December meeting”. 

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• The SEC’s Division of Examinations has set out its priorities for 2026, announced yesterday, notably excluding cryptocurrency from its inspection focus for the first time in several years.
• Under Chair Gary Gensler, digital assets, including firms involved with spot Bitcoin and Ether ETFs, had been treated as a key supervisory risk area.
• The new roadmap instead places primary emphasis on the oversight of artificial intelligence tools and automation across registrants.

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• El Salvador significantly expanded its bitcoin reserves on Monday evening, purchasing 1,090 BTC - its largest single-day buy to date. At roughly $100M in value, the transaction, executed at 6:01 p.m. ET, lifted the country’s holdings to 7,474 BTC, estimated at about $676M. The accumulation came as bitcoin briefly traded below $90,000, continuing President Nayib Bukele’s strategy of adding to the national store on price dips, alongside his ongoing policy of daily 1 BTC purchases since November 2022, which he again highlighted by sharing the latest acquisition on his official X account.
• However, questions remain over the nature of the acquire increase, given that El Salvador’s $1.4B IMF loan deal explicitly bars public-sector bitcoin purchases, and two senior finance officials said in July that no new BTC had been bought since February. 

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• Coinbase has announced that it is adding support for Toncoin (TON) on The Open Network. 
• Spot trading in the TON-USD pair is scheduled to launch today, with trading set to open on or after 9:00 a.m. PT, subject to sufficient liquidity and only in jurisdictions where Coinbase trading is supported.

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• Cboe Futures Exchange plans to introduce “Continuous Futures” designed to give traders U.S.-regulated long-term exposure to bitcoin and ether. These products are  not actually “continuous” but instead feature a 10-year maturity at launch and incorporate a daily cash adjustment, without requiring traders to regularly roll their contracts.
• The Continuous Futures contracts will be cleared through Cboe Clear U.S., LLC, a CFTC-supervised derivatives clearing organization, and will be tradable 23 hours a day, five days a week.
• Cboe’s upcoming Bitcoin Continuous Futures (PBT) and Ether Continuous Futures (PET) are expected to start trading on Cboe Futures Exchange, LLC (CFE) on December 15, 2025, pending regulatory approval.

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• VanEck’s Solana staking ETF, trading under the ticker $VSOL, launched yesterday, Nov 17, 2025, offering investors access to both SOL’s spot price performance and the staking rewards. Staking metrics on $VSOL as of Nov 14, 2025 show that 99.69% of the SOL is staked and the staking yield is reported at 6.67%.

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• Aave has introduced the Aave App, advertising yields of 6% annually, with balance protection of up to $1M per account. Returns are generated by depositing funds into Aave’s peer-to-peer lending market, where interest is earned from borrowers. 
• Aave’s lending pools are over-collateralized, meaning borrowers must provide more collateral than they borrow.

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This Week’s Calendar:

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Charts of the Day:

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