BTC stabilizes around $77,400, with derivatives signaling a more cautious market tone.

Crypto markets traded slightly higher on Wednesday, but softening futures open interest and uneven altcoin performance suggest traders are de-risking rather than fully committing to the rebound.

The broader market stayed cautious after Bitcoin (BTC) failed to break above $83,000 last week, leaving prices stuck in a consolidation range. BTC was recently trading near $77,400, up 0.7% since midnight UTC, but still recovering from a 5% weekly decline.

Ether (ETH) led gains among major assets, rising 1% to $2,130, while altcoins were mixed. CHZ, TON, and ATOM fell between 1% and 3%, whereas DASH, STRK, and PYTH gained around 5%.

In traditional markets, U.S. equities slipped on Tuesday as bond market volatility pressured sentiment. Investors are now focused on Nvidia (NVDA) earnings due after the closing bell, viewed as a key catalyst for tech-driven risk appetite.

Crypto derivatives activity continued to cool. Total 24-hour futures volume dropped 29% to $142.76 billion, while open interest remained broadly steady at around $127 billion. Liquidations eased for a second straight session, falling 47% to $153 million.

Bitcoin futures positioning showed mild de-risking. Combined USD and USDT-denominated BTC open interest slipped to 257,000 BTC across major exchanges, while global BTC futures open interest edged down to 744,000 BTC, a decline of roughly 1,000 BTC. The data suggests traders are reducing leverage into strength rather than adding new exposure.

XRP diverged from the broader market trend. Open interest rose more than 5% to 2.15 billion XRP, the highest level since October 11, alongside rising spot prices—often a signal of strengthening momentum. However, XRP’s 24-hour cumulative volume delta remained among the weakest in large caps, indicating aggressive selling pressure and suggesting some participants may be fading the move.

Zcash (ZEC) continued to stand out, with open interest increasing for a third consecutive day to 2.27 million tokens. The token rallied from $486.60 to $586 and formed a “golden cross,” where the 50-day moving average moves above the 200-day moving average, a pattern often associated with longer-term bullish momentum.

Ether derivatives activity remained elevated, with open interest climbing back above 15 million ETH and nearing the May 16 record of 15.52 million. Despite positive funding rates, negative volume delta readings point to a mixed and indecisive market structure.

Hyperliquid’s HYPE token showed one of the clearest divergences, with annualized funding at -36.85% even as price held near $48.85, its highest level since late October. The setup suggests futures shorts may be driven more by hedging activity than outright bearish positioning.

Volatility remains subdued across major cryptocurrencies, with Bitcoin and Ether implied volatility near yearly lows despite ongoing macro uncertainty. Deribit analysts noted that Bitcoin volatility appears relatively cheap, with long straddle strategies seen as a way to position for a potential breakout in either direction.

Options flows also reflected caution, including Bitcoin put ratio spreads and Ether call spreads among recent block trades.

Among altcoins, XDC led gains with a 12% rise since midnight, driven by a 44% jump in trading volume tied to renewed interest in real-world asset (RWA) narratives. DASH also extended its uptrend, gaining 10% over 24 hours with a pattern of higher highs and higher lows since early April.

Overall sentiment cooled, with CoinMarketCap’s “Altcoin Season” index falling to 34/100 from last week’s peak of 50/100, signaling a shift back toward Bitcoin-led market dominance.