Bitcoin saw a volatile trading session overnight, rising as much as 3.7% before giving back some of those gains.
The largest cryptocurrency remains in the black since midnight UTC, up 2.4% to trade around $65,600. This remains within a price range that has persisted over the past three weeks.
The altcoin market is also showing signs of life, with layer 1 tokens solana (SOL) and each saw a 4.5% rally, while tokens including VIRTUAL, MORPHO, and ETHFI climbed more than 10%.
US stock index futures have risen alongside the crypto market. Silver’s 4% rise since midnight suggests the broader rally in risk assets is speculative rather than news-driven.
The average crypto Relative Strength Index (RSI) indicator has moved from oversold territory to a neutral zone, suggesting a period of consolidation could be in store on Wednesday.
Positioning of derivative products
- Cumulative open interest (OI) in crypto futures rose more than 1.5% to $93.5 billion, although much of this notional growth came from spot price appreciation rather than capital inflows.
- The OI on Bitcoin and Ether (ETH) futures remained largely flat over 24 hours, with gold-linked Tether (XAUT) futures seeing a 12% decline in open positions. Capital appears to be moving away from gold-linked assets.
- TRX, AVAX, SOL, LINK, and HBAR stand out as the coins with the highest 24-hour cumulative volume delta. Positive CVD readings indicate that buying demand exceeds selling demand.
- Bitcoin’s 30-day annualized implied volatility index, BVIV, fell to 56%, reversing the rise from earlier in the week to 65%, suggesting market calm. This supports the continued recovery of the BTC price. Ether volatility shows a similar pattern.
- Of the Bitcoin options listed on Deribit, the $60,000 put became the most popular play, reflecting bearish concerns. Puts, or bearish bets, for BTC and ETH continue to trade more expensively than calls, or bullish bets.
Symbolic discussion
- The “altcoin season” indicator hit its highest level since early January on Wednesday, supported by rallies across the board.
- AI agent token VIRTUAL is leading the pack, up 15.5% since midnight and more than 20% in the past 24 hours, making it the best-performing asset in the CoinDesk 80 Index (CD80), which added 1.7%.
- Recovery token ETHFI also rose over 10% in the past 24 hours after CEO Mike Silagadze hinted at the possibility of rolling out a stablecoin.
- The native token of lending platform Morpho closed out Wednesday’s altcoin rally. It is now up 45.9% in the last 30 days after a 15% gain in the last 24 hours.
- On the other hand, toncoin (TON) and pippin (PIPPIN) are both in the red over the past 24 hours after increasing in value earlier this week, indicating asset turnover among traders and investors.
