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🔥BULLISH

Bitcoin Rebounds as DeFi Tokens Lead Crypto Market Gains

The recovery came with fear still elevated and derivatives activity rising, while traders turn to Friday’s U.S. jobs report for the next macro signal.

Bitcoin Rebounds as DeFi Tokens Lead Crypto Market Gains
Bitcoin Rebounds as DeFi Tokens Lead Crypto Market Gains
Bitcoin Rebounds as DeFi Tokens Lead Crypto Market Gains
Bitcoin Rebounds as DeFi Tokens Lead Crypto Market Gains

Bitcoin recovered from a dip near $75,600 to around $78,300, up about 1.3% since midnight UTC. Ether gained 2%, the CoinDesk 80 Index rose 2.3%, and DeFi Select advanced around 5%. Venice token VVV led the CoinDesk 100, gaining about 7% since midnight and 17% over 24 hours.

Why it matters

The bounce followed a market dip that coincided with Democrats winning control of Congress and renewed questions over crypto legislation. Prices recovered as U.S. stock futures turned positive, but sentiment remained cautious: the fear and greed index stood at 37, in fear territory, while the altcoin season index was 51.

Derivatives activity showed traders repositioning alongside the rebound. Futures volume rose 27% in 24 hours, while open interest increased only 3%; liquidations climbed 22% to $469 million. The taker volume ratio shifted to a slight buy lean at 51.6%, reversing the previous day’s sell bias.

Market impact

DeFi tokens broadly outperformed, with all seven members of the DeFi Select index higher. Injective gained 6.2%, while ZEC open interest jumped 25% alongside a 14% price gain. NEAR rose about 7%, but its open interest was nearly flat, up 0.35%, offering less evidence of fresh positioning behind the move.

Bitcoin’s one-week implied volatility eased from about 41% to 34%, and downside skew retreated after spiking during the dip. Traders now look to Friday’s U.S. jobs report. The recovery has broad participation, but fear readings and uneven open-interest growth leave conviction mixed.

Related tokens
$BTC $VVV $ETH $INJ $ZEC

Frequently asked questions

  1. How far did Bitcoin recover from its intraday low?

    Bitcoin rose from a dip near $75,600 to around $78,300, gaining about 1.3% since midnight UTC.

  2. What did derivatives data indicate about the market rebound?

    Futures volume rose 27% in 24 hours, while open interest increased 3% and liquidations climbed 22% to $469 million, suggesting substantial position turnover.

  3. Which assets showed contrasting open-interest trends?

    ZEC open interest jumped 25% alongside a 14% price gain. NEAR rose about 7%, but its open interest increased only 0.35%.

  4. How did Bitcoin options volatility change?

    Bitcoin’s one-week implied volatility fell from about 41% to 34%, and downside skew retreated after spiking during the dip.

  5. What event are traders watching next?

    Traders are looking to Friday’s U.S. jobs report for the next macro signal.

Source attribution
Aggregated from CoinDesk · Verified · Last refreshed 24m ago
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