Bitcoin and major cryptocurrencies staged a rebound on dovish signals from the Federal Reserve, with highly speculative tokens such as Memecore’s M and Audiera’s BEAT among the strongest performers.
Smaller altcoins surged as bitcoin BTC $61,838.15 and other large-cap tokens extended Wednesday’s recovery. The CoinDesk 20 Index climbed nearly 5% over 24 hours, reaching a one-week high, with all constituents trading in positive territory.
Memecore’s M jumped 81% while Audiera’s BEAT gained 12%, topping the leaderboard among the 100 largest cryptocurrencies by market value. Venice Token (VVV), ranked third, advanced about 9%.
Bitcoin, the leading digital asset, rose more than 4% to around $61,200. Ether (ETH) gained 5%, while Solana’s SOL surged 9% after the network introduced an on-chain governance system requiring a minimum of 100,000 staked tokens to submit proposals. XRP also added close to 4%.
Analysts at Marex described the move as the “first real bounce of the whole selloff,” adding that Fed Chair Kevin Warsh’s remarks in Sintra, where he said inflation risks had eased, helped unwind expectations of a July hike and pushed BTC back above $60,000 for the first time in a week. They noted Solana as the standout performer, up roughly 16% on the week.
Market participants are now watching Thursday’s U.S. nonfarm payrolls data and upcoming policy-related headlines, including President Donald Trump’s expected rollout of voluntary AI model standards next week.
In derivatives markets, activity picked up sharply as BTC, ETH, and other majors rallied following the dovish Fed tone. Trading volume rose 18% to nearly $200 million, while open interest increased 4% to $107 million. Total liquidations reached $444.6 million, with shorts making up the bulk—marking a reversal from recent long-heavy liquidations.
Bitcoin open interest climbed to 777.87K BTC, up from 768K the previous day and the highest since June 4. Rising prices alongside increasing open interest typically signal strengthening trend momentum, suggesting the rally may have further room to run.
Positive annualized funding rates near 10% and strong 24-hour cumulative volume delta readings further support a bullish short-term setup.
Ethereum, however, has yet to see a meaningful return of leveraged demand, with futures open interest stuck around 13.8 million tokens. XRP shows a similar pattern, while Solana futures activity has cooled from recent highs, with open interest slipping to 72 million SOL from a peak of 76.6 million in late June.
On Binance, the three-month futures basis for BTC and ETH remains below the U.S. 10-year Treasury yield of 4.49%, indicating weak incentives for arbitrage strategies and limited institutional positioning. Overall conditions still lean constructive.
Across most top 25 tokens, 24-hour open interest-adjusted cumulative volume delta remains positive, suggesting aggressive buying via market orders rather than passive limit bids—a notable shift from recent selling pressure.
Implied volatility for BTC and ETH has also eased after spiking in late June, typically a bullish signal as volatility tends to move inversely to spot price direction.
However, options markets remain cautious. Put contracts continue to trade at a premium to calls on Deribit, while OTC flows via Paradigm show mixed sentiment—BTC saw demand for $57K puts, while ETH calls were actively bought across multiple strikes.
In broader token developments, Ethereum layer-2 network Taiko resumed operations of its cross-chain bridge after a $1.70 million exploit in July. The restart followed a multi-stage recovery and independent security review.
The announcement briefly sent Taiko’s TAIKO token surging more than 100% to $0.38 before it retraced to around $0.16. The sharp reversal underscores ongoing volatility risks in smaller-cap tokens, with TAIKO’s market capitalization recently standing at just $32.5 million, placing it outside the top 500 cryptocurrencies.
Leave a Reply