bitcoin rose to $67,000 early Friday morning and was quickly rejected, although it remains about 1% higher since midnight UTC with ether increasing by half. The derivatives market is also showing signs of positivity.
The CoinDesk 20 Index (CD20) is little changed, up just 0.7% over the period.
While the gains mark a recovery from yesterday’s U.S. trading, which saw the cryptocurrency market fall back toward last week’s lows, bitcoin is still on track for a fourth consecutive week of declines. This is the longest streak of declines since mid-November.
Meanwhile, a slowdown in trading and declining volatility are weighing on volumes.
Traders will likely be keeping an eye on the US Consumer Price Index (CPI) release later today for clues on direction. A higher-than-expected reading could lift bond yields and the dollar, putting additional pressure on risk assets. A lower reading could indicate more favorable conditions that favor risk-taking.
Still, it will take a big jump to push the price of bitcoin to $85,000, a level that Deribiti chief trading officer Jean-David Péquignot said would indicate that the largest 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 clearing of late-cycle leverage.
- Perpetual funding rates have moved from neutral to positive across the board and now range between 0% and 8%. This broader optimism is being reflected across institutions, as the three-month annualized basis soared to just over 3%, indicating the first real rebound in professional conviction.
- The bitcoin options market shows 65% return call volume even as the one-week 25 delta bias narrowed to 17.9%. Despite this “bottom fishing” activity, the term structure of implied volatility (IV) remains in reverse in the near term, 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 long and short positions. Bitcoin ($112 million), ether ($52 million), and others ($16 million) were the leaders in terms of notional settlements.
- The Binance settlement heatmap indicates $68,800 as the central settlement level to monitor in case of a price surge.
symbolic talk
- PUMP, the token of Solana-based memecoin launchpad Pump.fun, is up more than 5% in the last 24 hours.
- The platform implemented a new way for token communities to assign fees directly through its mobile app with the inclusion of GitHub account integration.
- The integration offers an easier way for creators to assign community-generated automatic payments to a token, 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 fees, creators will need to claim them through the platform’s mobile app.
- Pump.fun was largely behind a huge memecoin trading frenzy early last year, which saw its monthly trading volume surpass $11 billion. Volume has since plummeted to $1 billion last month, according to data from DeFiLlama.
