Crypto markets bounce from oversold territory as the altcoin season index climbs back to its January peak.

Bitcoin rallied sharply overnight, climbing as much as 3.7% before trimming part of the advance, while altcoins outpaced the broader market and the “altcoin season” gauge reached its strongest level since January.

Bitcoin (BTC) saw choppy price action during Asian hours, briefly surging before settling back. The cryptocurrency remains up roughly 2.4% since midnight UTC, trading near $65,600 — still confined to the sideways range that has defined the past three weeks.

Altcoins showed renewed momentum. Layer-1 tokens solana (SOL) and cardano (ADA) each gained about 4.5%, while smaller-cap names such as VIRTUAL, MORPHO and ETHFI posted double-digit advances of more than 10%.

U.S. equity index futures moved higher alongside crypto. Meanwhile, silver’s roughly 4% rise since midnight points to a broader speculative bid across risk assets rather than a move driven by specific news catalysts.

From a technical standpoint, the average crypto relative strength index (RSI) has climbed out of oversold territory into neutral levels, suggesting consolidation could follow Wednesday’s rebound.

Derivatives positioning

Cumulative crypto futures open interest increased by more than 1.5% to $93.5 billion. However, much of that expansion appears attributable to rising spot prices rather than significant fresh capital inflows.

Open interest in bitcoin and ether (ETH) futures was largely unchanged over the past 24 hours. In contrast, futures tied to tether gold (XAUT) recorded a 12% drop in open positions, indicating capital rotation away from gold-linked exposure.

TRX, AVAX, SOL, LINK and HBAR recorded the highest 24-hour cumulative volume delta (CVD) readings, signaling that buying pressure outpaced selling in those markets.

Bitcoin’s 30-day annualized implied volatility index (BVIV) fell to 56%, reversing an earlier spike to 65% this week and pointing to calmer conditions. A similar moderation in volatility has been observed in ether, a dynamic that could support continued price stabilization.

On Deribit, the $60,000 bitcoin put option is currently the most actively held contract, underscoring lingering downside hedging. Across both BTC and ETH, puts continue to command higher premiums than calls, reflecting persistent caution.

Token focus

The altcoin season indicator climbed to its highest level since early January, supported by broad-based gains.

AI-focused token VIRTUAL led the rally, rising 15.5% since midnight and more than 20% over 24 hours, making it the top performer within the CoinDesk 80 (CD80) index, which itself advanced 1.7%.

Restaking protocol token ETHFI gained over 10% after CEO Mike Silagadze suggested a potential stablecoin launch.

Lending platform Morpho’s native token also contributed to the upswing, extending its 30-day gain to 45.9% after adding 15% in the past day.

On the downside, toncoin (TON) and pippin (PIPPIN) slipped into negative territory over 24 hours after earlier weekly gains, signaling continued asset rotation among traders.