CoinDesk
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.
Frequently asked questions
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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.
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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.
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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%.
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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.
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What event are traders watching next?
Traders are looking to Friday’s U.S. jobs report for the next macro signal.
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