CoinDesk
Bitcoin climbed above $78,000 during European trading, up 2.1% since midnight UTC, as Layer-2 and DeFi tokens led a broad crypto advance. Starknet's STRK rose 18%, Arbitrum's ARB gained 17% and Uniswap's UNI jumped 13%, while the DeFi Select Index advanced 8.3%.
Why it matters
The rally followed a softer macro backdrop after the post-Fed rate hike inflation scare. The 10-year Treasury yield slipped below 5%, Brent crude fell under $103 after reaching $109 earlier in the week, and S&P 500 and Nasdaq 100 futures rose 0.3% and 0.6%, respectively. The move marks a rotation into higher-beta DeFi and Layer-2 assets after privacy and haven tokens led Thursday's gains.
Crypto derivatives also showed signs of renewed positioning. Aggregate open interest expanded nearly 5% to $141.2 billion even as daily volume fell 3% to $95 billion, while balanced taker flow suggested capital was entering without aggressive momentum chasing.
Market impact
Bitcoin futures open interest rose to 680,000 BTC from 670,000 BTC, supporting a constructive read, but it remains well below the 800,000 BTC peak reached earlier this year. UNI futures open interest climbed to 86.61 million tokens from 76.89 million, near a record, alongside a sharp spot-market advance.
Risk appetite is broadening, but positioning remains selective. Bitcoin's 30-day implied volatility fell to 36%, while one-week options skew turned bullish for BTC and ETH even as one- and two-month skews retained a slight put bias. The Altcoin Season index rose to 44 from Tuesday's 32, keeping DeFi participation in focus.
Frequently asked questions
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What drove the crypto rally beyond token-specific demand?
A softer macro backdrop helped risk appetite recover. The 10-year Treasury yield fell below 5% and Brent crude dropped under $103, easing the inflation concerns that followed the Fed rate hike.
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Which tokens led the Layer-2 and DeFi advance?
STRK rose 18%, ARB gained 17% and UNI climbed 13%. The DeFi Select Index advanced 8.3% during the move.
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Did crypto futures positioning increase during the rally?
Yes. Aggregate crypto futures open interest expanded nearly 5% to $141.2 billion, while daily trading volume fell 3% to $95 billion.
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What did Bitcoin futures open interest indicate?
Bitcoin futures open interest rose to 680,000 BTC from 670,000 BTC, a constructive signal alongside the price gain. However, it remained below the 800,000 BTC peak reached earlier in the year.
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What do options and volatility signals say about near-term sentiment?
Bitcoin's 30-day implied volatility fell to 36%, and one-week options skew turned bullish for BTC and ETH. One- and two-month skews still showed a slight preference for puts.
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