Bitcoin Rebounds to $87K as Altcoins Rally Amid Market Recovery
Bitcoin BTC climbed back above $87,000 on Tuesday, rising 1.8% to $87,250, as improving market sentiment and strong equities performance lifted the broader crypto market. SUI, ENA, BONK, and CC led altcoin gains, each rising more than 8%, as traders embraced higher-risk assets following signs of a short-term market turnaround.
Despite the bounce, the longer-term trend remains bearish. Bitcoin and Ether ETH continue to form lower highs and lower lows, reflecting an ongoing downtrend from early October.
The crypto rally was supported by U.S. equities, with the Nasdaq Composite posting its largest daily gain since May on Monday, signaling renewed risk appetite. Bitcoin’s 30-day implied volatility (BVIV) dropped to 55% from Friday’s 65%, indicating a decline in expected near-term price swings, though volatility remains historically high.
Options activity shows cautious optimism. BTC put skews remain elevated, reflecting downside concern, while interest in $100K calls has grown, lifting notional open interest to $2 billion, matching $85K and $80K puts. BTC call condors dominated block trades, targeting a potential range above $100K, while ETH options favored strangles. Calls linked to BlackRock’s IBIT ETF also saw renewed demand, though the overall skew still favors protective puts.
In futures markets, XRP led top coins with a 12% increase in open interest to 1.84 billion XRP, the highest since October 11. BTC perpetual futures saw falling open interest, and funding rates turned negative for the first time in over five weeks, signaling a net short bias.
Among altcoins, SUI and ENA rose over 11%, while ETH gained 3.3% to $2,880, with daily trading volume climbing 13% to $27.3 billion. Sustained movement toward $3,500 could signal early bottoming. Lagging coins included Zcash (ZEC), down 6.6%, and DASH, even as the broader market showed strength. The average crypto RSI sits at 50.34, reflecting market indecision amid mixed price signals and sentiment.
