Crypto markets moved higher on Wednesday, with bitcoin, ether, and a range of altcoins advancing, though derivatives data suggests the rally may lack strong conviction.
The uptick came as oil prices briefly fell below $100 per barrel after U.S. President Donald Trump said the conflict in Iran could end within “two to three weeks,” easing macro concerns and supporting risk assets.
Bitcoin (BTC) was trading around $68,500, up 0.4% since midnight UTC and 3.1% over the past 24 hours. Ether (ETH) climbed back to $2,130 after dipping below $2,000 last week.
Despite the bounce, the broader crypto market remains in a downtrend that began in October. Still, sentiment has improved slightly following a prolonged consolidation phase between $62,500 and $75,000 since early February.
Altcoins outperformed on the day, with algorand (ALGO) surging 22% over 24 hours as it rebounded from oversold levels. DeFi tokens also posted strong gains, highlighting selective risk appetite across the market.
Derivatives positioning
Activity in crypto futures markets points to a lack of strong directional conviction. Trading volumes rose 23% to $210 billion over the past 24 hours, but open interest remained largely unchanged at around $106 billion.
The divergence between stable open interest and bitcoin’s recovery from weekend lows near $65,000 suggests the rally is being driven more by spot buying and short covering than by fresh leveraged positioning.
Ether showed a modest increase in open interest alongside its price, indicating some participation from leveraged traders. ETH and ZEC stood out with positive open interest-adjusted cumulative volume delta (CVD) and funding rates, signaling aggressive long positioning in futures markets.
In contrast, assets such as ADA, XMR, BCH, and SHIB showed weaker derivatives signals, pointing to less conviction behind their moves.
Options markets continue to reflect a relatively calm environment. Implied volatility for both BTC and ETH remains subdued, while risk reversals on Deribit still lean toward put options—indicating ongoing demand for downside protection. Bearish sentiment appears slightly stronger in bitcoin options compared to ether.
Token performance
Among sector indices, the CoinDesk Computing Select Index (CPUS) led gains, rising 2.7% since midnight UTC. The Smart Contract Platform Select Capped Index (SCPXC) and DeFi Select Index (DFX) both advanced 1.5%.
Meanwhile, broader benchmarks such as the CoinDesk 5 (CD5) and CoinDesk 20 (CD20) posted smaller gains of 0.35% and 0.69%, respectively, suggesting that major assets lagged behind the wider altcoin market.
Algorand (ALGO) topped the leaderboard, with DeFi tokens MORPHO and JUP also recording double-digit gains.
However, the uneven rise in open interest—particularly in assets like ETH and ZEC—suggests that parts of the rally are being driven by leverage rather than spot demand. This dynamic leaves the market vulnerable to a pullback, especially if new developments contradict Trump’s recent comments and shift sentiment again.
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