Key facts
- Bitcoin reached $64,400, attempting to break past a resistance level.
- Ether gained 2.6% to $1,790.
- Lighter (LIT) extended its rally, up over 5% and more than 200% since May 16.
- Crypto derivatives markets indicate growing bullish sentiment with rising open interest and positive funding rates.
- U.S. equity futures for the S&P 500 and Nasdaq 100 fell.
Cryptocurrencies experienced a notable upswing on Friday, with Bitcoin trading at $64,400, retesting a resistance level that had previously capped its gains. A successful breach of this level could pave the way for Bitcoin to target its June 15 high of $67,250. Ether also showed strength, rising 2.6% to $1,790, as it attempts to break a pattern of sequential lower highs and lower lows. The broader altcoin market displayed renewed optimism ahead of the weekend, a period typically characterized by lower liquidity. Lighter (LIT) continued its impressive performance, surging over 5% and extending its advance since May 16 to more than 200%. This rally is attributed to a recent deal with Robinhood Chain to integrate its decentralized derivatives exchange onto the platform, potentially reaching 28 million customers. Rival Hyperliquid's HYPE token also saw gains, rising 2.8% to $68, with technical indicators suggesting a bullish setup. This upward movement in the crypto market occurred in contrast to U.S. equities, where S&P 500 and Nasdaq 100 futures experienced declines of 0.1% and 0.4%, respectively. The divergence highlights a potential shift in investor sentiment or capital flows. Analysis of crypto derivatives markets suggests a stabilization, with a decrease in speculative activity and an increase in longer-term positioning. While 24-hour trading volume fell 7% to $140 billion, open interest rose 3% to $110.52 billion. This shift indicates that the current recovery may be driven more by strategic investments than by short-term speculative trading. Cumulative open interest in Bitcoin futures has slightly increased as the spot price surpassed $64,000, supported by positive funding rates and cumulative volume delta, suggesting a growing bias towards bullish bets. Ether, however, has not yet seen a significant rise in futures open interest, indicating caution among traders regarding leverage. Broader market indicators, such as positive 24-hour cumulative volume deltas across most tokens, suggest increasing buyer aggression. Furthermore, implied volatility indexes for Bitcoin and Ether have been declining, signaling trader expectations for market calm, a common characteristic of rallies. Bitcoin's implied volatility index (BVIV) fell to 38.5, its lowest point since June 6. In the options market, put skews are weakening, reflecting reduced concerns about downside risk, with calls at $62,000, $65,000, and $67,000 being actively traded.