Bitcoin rose to test $67,000 early Friday and was quickly rejected, though it’s still about 1% higher since midnight UTC with ether rises half as much. The derivatives market also shows signs of positivity.
The CoinDesk 20 Index (CD20) is little changed, up just 0.7% for the period.
While the gains mark a rebound from yesterday’s US trade, which saw the cryptocurrency market retreat from last week’s lows, bitcoin is still on track for a fourth straight week of declines. It is the longest falling streak since mid-November.
Meanwhile, a slowdown in trading and decreasing volatility is weighing on volumes.
Traders are likely to look to the US Consumer Price Index (CPI) due later today for hints on direction. A higher-than-expected reading could lift bond yields and the dollar, putting further pressure on risk assets. A lower reading may signal the easier conditions that are more conducive to risk taking.
Still, it will take a big jump to push the bitcoin price to $85,000, a level that Deribiti’s chief commercial officer, Jean-David Péquignot, said would signal that the biggest cryptocurrency’s long-term rally is no longer “broken.”
Derivatives
- The market is showing signs of renewed life as open interest (OI) fell to $15.5 billion, suggesting a clean-up of late-cycle leverage.
- Perpetual funding rates have turned neutral to positive across all venues, and now range between 0% and 8%. This broader optimism is reflected by institutions, as the three-month annual basis rose to just over 3%, signaling the first real rise in professional confidence.
- The bitcoin options market is showing call volume of 65%, even as the one-week 25-delta bias eased to 17.9%. Despite this “bottom fishing” activity, the Implied Volatility (IV) term structure remains in short-term retracement, confirming that traders are still paying a high “panic premium” for immediate downside protection.
- Coinglass data shows $256 million in 24-hour liquidations, split 69-31 between longs and shorts. Bitcoin ($112 million), ether ($52 million) and others ($16 million) led the way in fictitious liquidations.
- The Binance liquidation heatmap indicates $68,800 as a core liquidation level to monitor in the event of a price rally.
Token Talk
- PUMP, the token of Solana-based memecoin launchpad Pump.fun, has risen more than 5% in the past 24 hours.
- The platform rolled out a new way for token communities to allocate fees directly through its mobile app with the inclusion of GitHub account integration.
- The integration offers a simpler way for creators 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 through a portion of the fees generated. To receive the fees, creators must claim them through the platform’s mobile app.
- Pump.fun was largely behind a huge memecoin trading frenzy at the beginning of last year, when its monthly trading volume rose above $11 billion. Volume has since fallen to $1 billion last month, according to DeFiLlama data.
