Bitcoin has fully pared losses from Sunday’s dip as the leading cryptocurrency fell from around $48,600 to below $46,000 early Monday morning. As of 21:00 UTC (4 p.m. ET), bitcoin was trading above $48,600 on Coinbase. But the leading cryptocurrency still has yet to trade above the psychologically significant $50,000 mark. 

Much of bitcoin’s choppy price action and its recent dip could be attributed to futures deleveraging. Eager bulls piled into long trades expecting a swift breakout to $50,000 or higher. Funding rates for perpetual bitcoin futures have steadily increased through February, according to market data collected by Skew, with some funding rates reaching their highest levels in the past 12 months. 

Confirming this market condition, bitcoin futures saw over $520 million in liquidated contracts over the past 24 hours, according to data from Bybit. The eager buyback after these liquidations hints at the market’s resilient bullishness after resetting over-eager bullish futures traders. 

High positive funding rates signal an increase in long positions, whereas negative rates indicate a more bearish sentiment. The market tends to reset when traders, especially in overcrowded derivatives positions, become overly bearish or bullish. 

Even though some traders may be dissatisfied by the choppy price action, other market participants are enjoying themselves. Bitcoin miners, for example, hauled in a record $354 million in revenue last week, passing the previous record of $340 million set in mid December 2017. Network fees contributed over 15% of this revenue.

Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Monday trading around $1,820 and climbing less than 1% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

Shortly after setting new record highs above $1,850, ether also suffered a sizable drop, falling almost 10% to roughly $1,660 early on Monday. Over $313 million in ether futures were liquidated in the past 24 hours, per Bybit. 

The DeFi sector in aggregate followed suit, per data from Messari. But Ethereum and the various assets in the DeFi ecosystem have since recovered, with DeFi’s aggregate performance up nearly 3% in the past 24 hours, per Messari. 

Other alternative cryptocurrencies have also recovered from the market’s dip. FTX’s altcoin index perpetual futures are up nearly 20% from early Monday morning lows, completely retracing the correction. 

Digital assets on the CoinDesk 20 are mixed Monday. Notable winners as of 21:00 UTC (4:00 p.m. ET):

Notable losers:

Equities:

Commodities:

Treasuries: