Bitcoin hovered around the $65,000 mark on Friday as the crypto market maintained its upward momentum despite a surge in oil prices, with Brent crude nearing $100 per barrel amid continued Iran-related geopolitical uncertainty.
The digital asset sector ended the week on a relatively positive note, with Bitcoin rising as much as 1.1% from midnight UTC to $65,760. The move reflected strong resilience from crypto markets despite a backdrop of elevated global risks.
Brent crude futures climbed to $97.66 per barrel, their highest point since May, as tensions involving Iran continued without signs of a quick resolution. While previous oil rallies have often pressured risk assets, cryptocurrencies largely avoided a similar reaction during Friday’s session.
Ethereum followed Bitcoin’s lead, gaining as much as 1.6%, while tokens including Hyperliquid and Fetch.ai posted gains of more than 2%.
Traditional markets showed limited movement, with S&P 500 and Nasdaq 100 futures slightly higher, gold holding above $4,000, and the U.S. Dollar Index edging down.
Derivatives activity points to cautious positioning
Crypto derivatives markets saw increased turnover, but the data suggested traders were actively adjusting positions rather than aggressively building new exposure. Total trading volume rose 11% over 24 hours to $165 billion, while open interest remained stable at approximately $116 billion.
Dogecoin futures reflected growing bearish sentiment, with DOGE open interest nearing 16 billion tokens, the highest since October. The increase came as the token’s spot price weakened to its lowest level since November 2023. A rise in open interest alongside falling prices is often viewed as a sign that traders are opening more short positions.
Ethereum futures activity also expanded, with ETH open interest reaching 14.53 million ETH, the highest since June 7. However, market signals remained divided, as positive funding rates pointed to bullish demand while negative 24-hour cumulative volume delta (CVD) indicated that sellers were dominating market orders.
Most major cryptocurrencies recorded negative CVD readings over the past day, with TRX and CRO among the few exceptions.
Volatility conditions improved slightly, offering some support to buyers. Bitcoin’s 30-day implied volatility index declined 3% to 39%, ending a five-day increase, while Ethereum’s volatility measure also weakened.
Bitcoin options traders on Deribit continued to show optimism, with a large $5 billion concentration of open interest around $70,000-$72,000 strike prices. Call options dominated the positioning, with additional bullish interest appearing at the $77,000 and $80,000 levels.
Altcoins show mixed recovery signals
Hyperliquid led the altcoin market for a second consecutive session, gaining 2.4% to $58.93 as the token continued its gradual recovery after retreating from July highs.
AI-focused cryptocurrencies showed signs of stabilization, with Fetch.ai advancing 2.23% and NEAR Protocol adding 1.38% after recent weakness. Morpho also extended its strong performance, rising 1.89% during the session.
World Liberty Financial slipped 2.13%, giving back part of Thursday’s 12% rally as the token continued to experience sharp price fluctuations due to limited liquidity.
Lighter declined another 1.32%, extending its pullback and erasing nearly 20% from its July peak after a more than 200% surge between May and early July.
Despite the broader recovery, the overall altcoin market remained fragile. WLFI, AVAX, HBAR, and SUI all dropped between 4% and 10% over the last 24 hours, showing that parts of the market are still facing selling pressure.
