Investors are bracing for fresh market catalysts as major U.S. banks prepare to release quarterly earnings on Tuesday, followed by Wednesday’s consumer inflation report.

South Korea’s KOSPI dropped 5.5% on Tuesday, putting the index roughly 38% below its June record high. Cryptocurrency markets also experienced sharp fluctuations. Bitcoin (BTC) slipped beneath $81,000 before recovering above $84,000 and later trading just over $83,000, while Ether (ETH) touched a low of $2,400.

The decline in Asian stocks was driven by mounting doubts about the sustainability of AI-related investment. Broadcom’s CEO compared speculative AI spending to casino gambling, unsettling investors. Meanwhile, reported advances by Chinese memory-chip maker CXMT fueled concerns that established semiconductor companies could face stronger competition.

Samsung Electronics (005930) shares fell 7%, while SK Hynix (00060) lost 10%.

Markets are also focused on Wednesday’s U.S. Consumer Price Index (CPI) release. Economists expect annual headline inflation to reach 3.6%, with core inflation projected at 2.5%. If headline CPI matches forecasts, it would mark an increase from the previous month’s 3.4%.

The third-quarter earnings season is also gathering pace, with JPMorgan Chase (JPM), Goldman Sachs (GS) and Citigroup (C) scheduled to announce results later Tuesday. Their reports are expected to provide additional insight into consumer demand, lending conditions and business activity.

Derivatives positioning

Futures activity has increased as traders close leveraged positions. Twenty-four-hour futures volume rose 66% to $212 billion from $126 billion the previous day. Open interest (OI), which represents the dollar value of outstanding contracts, fell 1.58% to $143.4 billion, while liquidations jumped 284% to $813 million. The combination of heavier trading, declining OI and more forced closures indicates that leverage is being removed from the market.

Sellers have a modest advantage in immediate market execution. The 24-hour taker buy/sell volume ratio shifted to 48% for buyers and 52% for sellers, reversing the previous day’s 52%-to-48% split in favor of buyers. Taker volume measures trades executed immediately at available prices and helps identify which side is acting more aggressively. Buyers have narrowed the difference but have not taken the lead.

SPCX and SNDK are seeing the heaviest turnover among futures tied to traditional assets on crypto platforms. CoinGlass data shows their 24-hour trading volumes surged 700% and 271%, respectively. Despite this increase, open interest for both contracts remains below $1 billion, well below levels for major cryptocurrency assets. The activity suggests rapid trading rather than a significant buildup of outstanding positions.

SNDK positions are increasing even as prices fall. Open interest climbed nearly 9% while the contract price dropped 7%. Because OI is measured in dollars, the price decline automatically lowers its reported value. After adjusting for that effect, outstanding contracts increased by approximately 17%. This indicates fresh positioning in a weakening market, potentially reflecting new short bets, although some traders could be buying at lower prices.

SK Hynix contracts are also attracting new positions during the downturn. Open interest rose 18% as the price fell 8%, implying an increase of roughly 28% in outstanding contracts after accounting for the price movement. The trend suggests that risk aversion in South Korean equities is spilling over into on-chain derivatives markets.

Bitcoin and Ether futures continue to see leverage unwind. Open interest in both assets declined by at least 2% over the past 24 hours, while prices remained broadly flat or negative. Part of the reduction reflects lower dollar valuations rather than actual contract closures, but the overall trend still points to an outflow of positions. XRP, SOL and HYPE are showing similar patterns.

ZEC and NEAR are losing open interest alongside their prices. ZEC fell more than 7% over 24 hours, while OI declined 11%. Adjusting for the price drop suggests the number of outstanding contracts decreased by approximately 4%. The previous day, OI increased 7% as the price advanced 6%, representing only around 1% growth in contracts. The latest contraction therefore exceeds the earlier buildup. NEAR has displayed a similar pattern.

Annualized funding rates for both tokens remain positive at approximately 7