Bitcoin rose to test $67,000 early Friday and was quickly pushed back, although it remains about 1% higher since midnight UTC with ether. increasing by half as much. The derivatives market is also showing signs of positivity.
The CoinDesk 20 Index (CD20) was little changed, up just 0.7% over the period.
Although the gains mark a recovery from yesterday’s U.S. trading, which saw the cryptocurrency market fall back toward last week’s lows, bitcoin is still on track for a fourth straight week of declines. This is the longest streak of decline since mid-November.
At the same time, slowing trade and reduced volatility are weighing on volumes.
Traders are likely to look to the US Consumer Price Index (CPI) which will be released later today for guidance on where to go. A higher-than-expected reading could push bond yields and the dollar higher, putting further pressure on risky assets. A lower value could signal easier and more risk-taking conditions.
Even so, it will take a sizable jump to push Bitcoin’s price to $85,000, a level that Deribiti chief commercial officer Jean-David Péquignot said would signal that the largest cryptocurrency’s long-term rally is no longer “broken.”
Derivative products
- The market is showing signs of renewed life as open interest (OI) fell to $15.5 billion, suggesting late-cycle leverage cleaning.
- Perpetual funding rates have moved from neutral to positive across all sites, now sitting between 0% and 8%. This broader optimism is reflected in institutions, as the three-month annualized basis has climbed to just over 3%, signaling the first real uptick in professional conviction.
- The Bitcoin options market is showing call volume back at 65%, even as the one-week 25 delta skew eased to 17.9%. Despite this “bottom fishing” activity, the implied volatility (IV) term structure remains in near-term backwardation, confirming that traders are still paying a high “panic premium” for immediate downside protection.
- Data from Coinglass shows $256 million in liquidations over 24 hours, split 69-31 between long and short positions. Bitcoin ($112 million), ether ($52 million) and others ($16 million) were the leaders in terms of notional liquidations.
- Binance’s liquidation heatmap shows $68,800 as the base liquidation level to watch for in the event of a price rally.
Symbolic discussion
- PUMP, the token of Solana-based memecoin launchpad Pump.fun, is up more than 5% in the past 24 hours.
- The platform has rolled out a new way for token communities to assign fees directly through its mobile app with the inclusion of GitHub account integration.
- The integration provides creators with an easier way to award automatic payouts generated by a token’s community, and more social features are expected to be introduced in the future.
- In practice, this means that communities can start supporting creators on GitHub with a portion of the fees generated. To receive the fees, creators will have to claim them via the platform’s mobile application.
- Pump.fun was largely behind a major trading frenzy early last year that saw its monthly trading volume surpass $11 billion. Volume has since plunged to $1 billion last month, according to data from DeFiLlama.
