Bitcoin hovers below $81K as markets eye upcoming Trump-Xi talks

Bitcoin traded sideways ahead of a కీలక meeting between U.S. President Donald Trump and Chinese President Xi Jinping, with the broader crypto market holding steady despite ongoing macro and geopolitical uncertainty.

The leading cryptocurrency hovered around $80,900, up about 0.5% since midnight UTC, in line with gains across major crypto indices. Market activity suggests a continued preference for large-cap assets, while participation in smaller tokens remains more selective.

Investors are closely monitoring the Trump–Xi discussions, expected to focus on trade tariffs, rare earth supply chains, and geopolitical tensions. Any signs of progress—even symbolic—could lift sentiment and provide support for risk assets.

Ether rose 1.3% to near $2,300, buoyed by the Ethereum Foundation’s rollout of “Clear Signing,” a new security feature designed to protect users from unknowingly authorizing harmful transactions.

Among altcoins, Injective’s INJ token surged up to 24%, marking its biggest gain in months. Polkadot’s DOT and the TRUMP memecoin also advanced დაახლოებით 5%, reflecting pockets of strength in the altcoin market.

Derivatives data points to renewed inflows and positioning. BNB futures open interest climbed over 5% to 6.15 million tokens, the highest level since early April, signaling fresh capital entering the market. Zcash also stood out, posting the strongest growth in open interest among major tokens alongside a positive cumulative volume delta, indicating aggressive buying.

Despite this uptick, BNB’s funding rates remain below an annualized 10%, suggesting bullish sentiment without excessive leverage. Its market capitalization has risen to $92.2 billion, the highest since mid-March.

Dogecoin is also seeing increased activity, with open interest rising 5.75% to 15.38 billion tokens. The token gained करीब 4% to trade near $0.11, supported by a bullish crossover of its 50- and 100-day moving averages—pointing to strengthening momentum.

Ether continues to attract attention in derivatives markets, with futures open interest surpassing 15 million ETH, nearing record highs. Combined with tightening Bollinger Bands, this suggests the potential for a sharp increase in volatility.

In contrast, bitcoin positioning has remained stable, with open interest holding near 740,000 BTC over the past 24 hours. This indicates traders are showing greater conviction in altcoins relative to bitcoin.

However, caution persists beneath the surface. Most tokens—excluding BNB, XRP, and TRX—are recording negative cumulative volume deltas, suggesting that selling pressure via market orders continues to dominate parts of the market.

Macro risks, including elevated inflation and rising bond yields, remain in focus. Still, volatility indicators show little चिंता among traders. Bitcoin’s 30-day implied volatility is holding near 40%, while ether’s has dropped below 55%, both near multi-month lows.

Options markets reflect a cautiously optimistic outlook. Higher-strike call options dominate trading volumes, signaling bullish expectations, while strategies such as put spreads and straddles highlight efforts to hedge downside risks and prepare for potential volatility spikes.

In decentralized finance, sentiment is recovering. Tokens tied to major protocols have rebounded over the past week, with Aave up 3%, Arbitrum gaining 16%, and Lido rising 11%.

Arbitrum’s rebound follows the Kelp DAO exploit, which disrupted its ecosystem through the issuance of unbacked rsETH via a compromised bridge. The incident was later linked to North Korea’s Lazarus Group.

Recovery efforts are ongoing. The unbacked rsETH supply has been removed, and affected Aave positions have been liquidated. Around 117,000 rsETH—valued at roughly $278 million—is set to be gradually restored to the bridge system, with withdrawals expected to resume soon.

Separately, approximately 30,765 ETH, worth around $71 million, remains frozen under legal oversight. A U.S. court has approved transferring the funds to an Aave-controlled wallet, though the assets will remain restricted pending further proceedings.

Overall, crypto markets continue to show resilience, with investors balancing cautious optimism against macro uncertainty while positioning for both potential upside and future volatility.