Bitcoin surpasses $82,000: privacy coins and altcoins lead the rally

Bitcoin surpasses $82,000 thanks to weak dollar

Bitcoin reached $82,000 yesterday, driven by the strengthening of market sentiment and the weakening of the US dollar. The queen of cryptocurrencies recorded a 1% increase in the last 24 hours, bringing the price to $81,600. This growth was influenced by statements from US Secretary of State Marco Rubio, which reduced concerns about further military escalation, causing both the dollar and oil prices to fall.

Ethereum lags behind Bitcoin

Ethereum, the second-largest cryptocurrency by market capitalization, gained 0.8%, reaching $2,380. However, despite the improvement in risk sentiment, ETH remains below its April 17 high of $2,460, continuing to underperform compared to Bitcoin.

Altcoins on the rise: Zcash and Dash lead the rally

Altcoins have outperformed major cryptocurrencies, with Zcash (ZEC) and Dash (DASH) recording double-digit increases, respectively 14% and 16% since the start of the day. Computing-related assets such as Chainlink (LINK) and Bittensor (TAO) have also shown advances, while the momentum of memecoins seems to be cooling off.

The cryptocurrency market reacts to Rubio's statements

The cryptocurrency market showed volatility on Tuesday evening following statements from MicroStrategy (MSTR) President Michael Saylor regarding the possibility of selling Bitcoin to pay dividends. However, Bitcoin recovered the $82,000 threshold during the European morning of Wednesday, with an increase of approximately 1.3% compared to midnight UTC. This movement was primarily driven by the weakening of the US dollar, which fell 0.5% in the same period.

Implications for Fed policies

The dollar's weakness came after US Secretary of State Marco Rubio stated that the United States had "reached its military objectives" and was not "interested in further escalation." This news led to a drop in oil prices and suggested that the Federal Reserve might begin a cycle of interest rate cuts, rather than considering increases to combat inflation.

Positioning in futures

Positioning in Bitcoin futures remains high, with open interest near a historic high of 800,000 BTC. However, perpetual funding rates remain flat or slightly positive, suggesting that the market is not overloaded or overcrowded. This is a positive signal, indicating that market growth is driven by stable demand rather than speculative fervor.

Ethereum and other assets

The Ethereum market also shows signs of strength, with open interest rising to 14.5 million ETH, the highest level since March 28. Among the major cryptocurrencies, Solana (SOL) recorded a 6% increase in open interest in the last 24 hours, reaching 61.79 million tokens, although this level represents only a three-week high.

The Open Network (TON) on the rise

The Open Network (TON) is experiencing significant capital inflows, with a 6% increase in open interest to 213 million tokens. This level has reached a new peak for the third consecutive day, but funding rates remain low and just positive, indicating continued coverage by spot buyers.

Positive market sentiment

The overall market picture has shifted from bearish to bullish in the last 24 hours. At the time of writing, the cumulative delta volume (CVD) adjusted for open interest for most cryptocurrencies, with the exception of Hedera Hashgraph (HBAR) and Counterparty (CC), is positive. This indicates that buyers are driving trading activity, placing more market orders than sellers, unlike the previous day when most cryptocurrencies had a negative CVD.

Volatility compression

The compression of Bitcoin and Ethereum volatility continues, with the Ethereum Volatility Index (EVIV) falling to 55% at the start of the day, a level not seen since January 31. This persistent decrease supports the bullish spot action.

Options on Deribit

On Deribit, Bitcoin call options, or bullish bets, with strike prices between $82,000 and $115,000 were among the most traded contracts in the last 24 hours. However, risk reversals still show a slight general preference for put options across different maturities.

Altcoins on the rise

The altcoin market showed signs of strength on Wednesday, with several assets recording double-digit increases. Among these, Zcash (ZEC) and Dash (DASH) gained 14% and 16% respectively since the start of the day. Without a clear news catalyst, it seems that investor confidence is driving the rally after a period of consolidation between early February and early May, which led to persistent oversold conditions.

CoinDesk Indices

The CoinDesk 80 (CD80) index, which measures altcoin performance, was the best benchmark on Wednesday, with a 3.5% increase, while the CoinDesk 20 (CD20) index, which measures major cryptocurrencies, increased by approximately 1.5%. The memecoin rally at the beginning of the week seems to be cooling off, with the CoinDesk 20 (CD20) index, which measures major cryptocurrencies, increasing by approximately 1.5%. The memecoin rally at the beginning of the week seems to be cooling off.