When Bitcoin (BTC) and Ether’s (ETH) Recovery Rally overall Momentum on Tuesday, the eternal futures market saw an even more pronounced increase in open interest and pointed to growing investor confidence when the Trump administration called back on its commercial target, anti-fed rhetoric.
BTC, the leading cryptocurrency with market value, rose 6.79% almost topped $ 94,000 for the first time since March, Coindesk data shows. It is the most significant one-day percentage gain since April 9. Ethereum Blockchains ether token jumped 11% to $ 1,1175, that’s the best performance since April 2nd.
The rally came when the US Finance Ministry of Scott Bessent discussed de-scaling in merchant tensions in US China, followed by President Donald Trump, who said tariffs on Chinese goods will decrease significantly from the current 245%. Trump also said he has no intention of shooting Federal Reserve -President Jerome Powell.
The price wave was characterized by dealers who put money into eternal futures trade on major offshore exchanges, as shown in greater increases in open interest in Binance, Bybit, OKX and dismissed and leading chain-evig-focused decentralized exchange hyperliquid.
The cumulative nominal open interest or the dollar value of the number of active efforts in BTC Perpetual Futures increased by 10% to $ 17.83 billion, according to Data Source Velo. It’s the biggest single-day increase since March 2, when Trump mentioned XRP, ADA and SOL as potential candidates for a strategic digital assets reserve that would contain Bitcoin and Ether as the core. The administration later said it would keep Bitcoin seized in enforcement measures as a reserve.
“Bitcoin’s open interest rose faster than its price, with most positions derived from Binance,” said Joao Wedson, CEO of Alphractal Research, on X. “The question is that a large part consists of a long time, so increased volatility is expected in the coming hours.”
The price wave was probably helped by short squeeze or settlement of short eternal futures -bets. Financing rates were negative for approx. 24 hours ago, which involves a bias for shorts.
Ether’s imagining open interest jumped almost 16% to $ 6.60 billion, the biggest one-day increase since November 27.
An increase in open interest along with a price increase is said to confirm the bullish momentum. In other words, BTC and ETH could continue to rise.
Financing rates Bullish
Bias for Bullish Long positions also appear in the moderately positive annual eternal financing rates, which range between annual 5% to 10% for BTC and ETH.
Financing rates charged every eight hours are exchanged between traders who have long and short positions in eternal futures. They are designed to ensure that the contract price remains close to the underlying asset price.
A positive financing rate implies that dealers are more likely and willing to pay fees for having long positions. As such, it is considered a sign of bullish mood. However, excessive high financing rates may indicate overcrowding or bullish speculative innerness, but that’s not the case right now.
