While Bitcoin (BTC) and Ether (ETH) recovery rally gained momentum on Tuesday, the perpetual term market saw an even more pronounced increase in open interest, highlighting an increasing confidence of investors while the Trump administration has resumed its commercial and anti-nourri rhetoric.
BTC, the main cryptocurrency by market value, increased by 6.79% despite $ 94,000 for the first time since March, according to Coindesk data. This is the percentage of percentage in a most important day since April 9.
The rally came while the American Treasury Secretary, Scott Bessent, discussed de-escalation in American-Chinese trade tensions, followed by President Donald Trump saying that the prices on Chinese products will considerably fall from the current 245%. Trump also declared that he did not intend to dismiss the president of the Federal Reserve Jerome Powell.
The price increase was characterized by traders which deploy money for perpetual term contracts on the main offshore scholarships, as evidenced by the greater increases in the open interest in Binance, Bybit, OKX and Deribit and as a hyperliquid on decentralized exchanges focused on the chain.
The cumulative notional interest open, or the value in dollars of the number of active bets in the perpetual term contracts of the BTC, increased by 10% to 17.83 billion dollars, according to the source of VELO data. This is the largest increase of a day since March 2, when Trump mentioned XRP, ADA and Sol as potential candidates for a reserve of strategic digital assets which would keep bitcoin and ether as kernel. The administration later said that it would maintain Bitcoin seized in application measurements as a reserve.
“Bitcoin’s open interest jumped faster than its price, most of the posts from Binance,” said Joao Wedson, CEO of Alphractal Research, on X. “The problem is that a large part consists of long, so increased volatility is expected in the coming hours.”
Price overvoltage has probably been helped by short pressure, or short -term short -term Paris. The financing rates were negative about 24 hours ago, which involves an bias for shorts.
Ether’s theoretical notional interest jumped almost 16% to $ 6.60 billion, the highest increase in one day since November 27.
It is said that an increase in open interest in parallel with an increase in prices confirms the bullish momentum. In other words, BTC and ETH could continue to increase.
Optimistic financing rates
The bias of long bullies is also obvious from the perpetual financing rates of moderately positive annualized, going between 5% to 10% for BTC and ETH.
The funding rates, billed every eight hours, are payments exchanged between traders occupying long and short positions in perpetual term contracts. They are designed to ensure that the contract price remains close to the cash price of the underlying assets.
A positive financing rate implies that traders are more inclined and willing to pay fees to occupy long positions. As such, this is considered a sign of bullish feeling. However, excessively high funding rates can indicate overcrowding or upward speculative fervor, but this is not the case for the moment.
