Bitcoin Bounces Back as Altcoins Stage Sharp Rally
Bitcoin climbed 1.8% Tuesday, hitting $87,250 and shaking off the doom and gloom that's been hanging over crypto since the weekend.
Quick overview
- Bitcoin rose 1.8% to $87,250, buoyed by a strong performance in the Nasdaq, which improved overall risk appetite.
- Altcoins outperformed Bitcoin, with SUI gaining over 11% and Ethereum increasing by 3.3%, signaling potential market recovery.
- Despite the rally, privacy coins like Zcash and Dash struggled, highlighting uneven market performance.
- Caution remains prevalent as traders hedge their positions, and the long-term trend still shows lower highs and lows.
Bitcoin climbed 1.8% Tuesday, hitting $87,250 and shaking off the doom and gloom that’s been hanging over crypto since the weekend. The bounce came after the Nasdaq posted its biggest daily gain since May, which helped lift risk appetite across the board.
Altcoins did even better. SUI gained over 11%. ENA, BONK, and CC all rose more than 8%. Ethereum went up 3.3%, which doesn’t sound like much but felt significant given how badly it’s been beaten down over the past month. Some traders think this could be where the market stops falling. Maybe.
Privacy coins got left behind. Zcash fell 6.6%. Dash stayed negative too. The rally clearly didn’t reach every corner of crypto.
Bitcoin getting back above $87,000 is worth noting. It shows the coin is shaking off some of the bearish talk that built up over the weekend when people were calling for lower prices. The relative strength in BTC opened the door for smaller tokens to run harder as investors felt comfortable taking on more speculative positions.
Options activity tells part of the story. BlackRock’s spot Bitcoin ETF saw fresh demand for upside calls Monday, though the overall options market still leans toward protective puts. That split suggests traders are hedging both directions while prices bounce around.
In futures, XRP is leading the way among major coins. Open interest jumped 12% to 1.84 billion XRP, the highest level since mid-October. Meanwhile, open interest in Bitcoin perpetual futures on major exchanges keeps dropping, which indicates low participation in this price bounce. Funding rates in BTC perps actually flipped negative, meaning there’s a net bias toward short positions for the first time in over five weeks.
The longer-term picture hasn’t changed much. Charts still show a series of lower highs and lower lows, classic downtrend territory. Ethereum would need to rally and hold around $3,500 before anyone could argue it’s putting in a bottom. Right now it’s not there.
Tuesday’s altcoin action felt like the market coming back to life after a rough stretch. Tokens like SUI and ENA rising over 11% following a week of declining prices gave some traders hope that the worst might be over. But one day of gains doesn’t flip a trend.
The equities rally helped. Stocks had a strong day, and when that happens, crypto tends to follow. Tuesday played out exactly like that. Bitcoin and the major alts got bought as equities rallied.
Still, caution dominates. Metaplanet tapped its $500 million bitcoin-backed credit facility for another $130 million loan as part of its expanding BTC-focused funding strategy. Total borrowing under that facility now sits at $230 million, backed by 30,823 BTC as collateral. That kind of leveraged play works great when prices rise but gets ugly fast if things reverse.
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