Crypto markets moved higher on Wednesday, with bitcoin, ether and a range of altcoins advancing, although derivatives data points to a lack of strong conviction behind the rally.
The gains followed a dip in oil prices, which briefly slipped below $100 per barrel after U.S. President Donald Trump said the conflict in Iran could end within “two to three weeks,” easing pressure on risk assets.
Bitcoin (BTC) traded around $68,500, up 0.4% since midnight UTC and 3.1% over the past 24 hours. Ether (ETH) rebounded to $2,130 after falling below $2,000 last week.
Despite the bounce, the broader market remains in a downtrend that has been in place since October. Still, sentiment has improved modestly following a consolidation range between $62,500 and $75,000 that has held since early February.
Altcoins led the upside, with algorand (ALGO) surging 22% over the past day as it recovered from oversold conditions. DeFi tokens also posted strong gains, highlighting pockets of renewed risk appetite.
Derivatives positioning
Futures market activity suggests the rally is not being driven by aggressive positioning. Trading volumes rose 23% to $210 billion over the past 24 hours, but open interest remained broadly unchanged at around $106 billion.
This disconnect indicates that the move higher is likely supported by spot buying and short covering, rather than a meaningful buildup in leveraged long positions.
Ether did see a slight increase in open interest alongside its price, pointing to some participation from leveraged traders. ETH and ZEC stood out with positive open interest-adjusted cumulative volume delta (CVD) and funding rates, signaling active long positioning in those markets.
In contrast, ADA, XMR, BCH and SHIB showed weaker derivatives signals, suggesting limited conviction behind their respective moves.
Options markets continue to reflect a subdued environment. Implied volatility for both BTC and ETH remains low, while risk reversals on Deribit still favor put options, indicating persistent demand for downside protection. Bearish positioning is somewhat more pronounced in bitcoin options.
Token performance
Among sector indices, the CoinDesk Computing Select Index (CPUS) led gains with a 2.7% increase. The Smart Contract Platform Select Capped Index (SCPXC) and the DeFi Select Index (DFX) each rose 1.5%.
Broader indices lagged behind, with the CoinDesk 5 (CD5) up 0.35% and the CoinDesk 20 (CD20) gaining 0.69%, signaling relative underperformance among large-cap assets.
Algorand (ALGO) was the top performer, followed by DeFi tokens MORPHO and JUP, both of which recorded double-digit gains.
However, the uneven rise in open interest—particularly in ETH and ZEC—suggests that parts of the rally are being fueled by leverage rather than broad-based demand. This leaves the market vulnerable to a pullback, especially if new developments contradict Trump’s comments and shift sentiment.
