Bitcoin experienced 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. It is still within a price range that has persisted for the past three weeks.
The altcoin market is also showing signs of life, with tier-1 tokens solana (SOL) and each posted a 4.5% rally, while tokens including VIRTUAL, MORPHO and ETHFI rose more than 10%.
US stock index futures rose along with the crypto market. Silver’s 4% rise since midnight suggests the broader risk-asset rally is speculative rather than news-driven.
The average crypto relative strength index (RSI) indicator has moved out of oversold territory back into a neutral zone, suggesting that a period of consolidation may be on the cards for Wednesday.
Derivatives positioning
- Accumulated crypto futures open interest (OI) is up over 1.5% to $93.5 billion, although much of the notional growth comes from spot price appreciation rather than capital inflows.
- OI in bitcoin and ether (ETH) futures has remained largely stable over 24 hours, with futures tied to tether gold (XAUT) seeing a 12% drop in open positions. Capital appears to be rotating out of gold-linked assets.
- TRX, AVAX, SOL, LINK and HBAR stand out as coins with the highest 24-hour cumulative volume delta. Positive CVD readings indicate that buying demand is exceeding selling demand.
- Bitcoin’s annualized 30-day implied volatility index, BVIV, fell to 56%, reversing the early week’s pop of 65% to suggest calm in the market. This supports continued recovery in BTC’s price. Ether’s volatility shows a similar pattern.
- On Deribit-listed bitcoin options, the $60,000 put has become the most popular play, reflecting downside concerns. Puts or bearish bets for both BTC and ETH continue to trade more expensive than calls or bullish ones.
Token talk
- The “Altcoin Season” indicator hit its highest level since early January on Wednesday, supported by rallies across the board.
- AI agent token VIRTUAL led the pack, rising 15.5% since midnight and more than 20% in the past 24 hours to make it the best-performing asset in the CoinDesk 80 (CD80) index, which added 1.7%.
- Recapture token ETHFI also surged by more than 10% in the last 24 hours after CEO Mike Silagadze hinted at potentially rolling out a stablecoin.
- Lending platform Morpho’s initial token rounded off Wednesday’s altcoin rally. It is now up 45.9% over the past 30 days after a 15% increase over the past 24 hours.
- On the flip side, toncoin (TON) and pippin (PIPPIN) are both in the red over the past 24 hours after rising in value earlier this week, indicating asset rotation among traders and investors.
