- Risk-off sentiment persists, weakening outlook for Bitcoin, Ethereum, and XRP:

Global markets face mounting pressure as tensions between the United States, Israel, and Iran continue, despite U.S. President Donald Trump's warning of destroying Iranian power plants if the Strait of Hormuz is not opened. The oil strait remains blocked, with world nations facing supply shortages, and prices hovering near $100 per barrel.

In response, the Iranian regime warned it would launch direct attacks on Israeli power generation stations and desalination plants serving Gulf nations, according to a Reuters report. This could have long-term effects on stock and oil prices. The International Monetary Fund also warned that continued rising oil and energy prices could exacerbate global inflation and slow economic growth.

Meanwhile, interest in crypto assets remains depressed, as reflected in the Fear & Greed Index, which dropped to 8 (extreme fear) on Monday from 10 the previous day and 23 last week.

Fear & Greed Index | Source | Alternative

The notional value of outstanding derivatives contracts is shrinking, as evidenced by Bitcoin's open interest declining to $45.73 billion on Monday from last week's peak of $51.29 billion.

The continued decline in open futures trading volume indicates traders lack conviction in Bitcoin's ability to sustain the uptrend. Consequently, they are reducing their market exposure and hesitating to open new positions. This sentiment reflects weak morale, as the Fear & Greed Index has retreated to high fear levels.

Daily Bitcoin Futures Contract Trading Information | Source: CoinGlass

Ethereum similarly faces a weak derivatives market, with open futures contracts falling to $27.5 billion from their weekly peak of $33.89 billion. If weak open trading volume persists, steady recovery may remain a distant dream, exposing Ethereum to the risk of falling below the $2,000 pivot level.

Ethereum Futures Contract Open Trading Information | Source: CoinGlass

Retail investor interest in XRP has declined, evident from the sharp drop in open futures trading volume to $2.33 billion on Monday, down from $2.47 billion the previous day and $2.87 billion last week. The XRP derivatives market has experienced continuous decline since open trading volume peaked at $10.94 billion in July.

Daily XRP Futures Contract Trading Information | Source: CoinGlass
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