Bitcoin Climbs 25% in Seven-Day Rally as Buying Momentum Builds

Bitcoin climbed above $80,000 for the first time since May, extending its seven-day rally to around 25%.

Bitcoin (BTC) gained more than 4% over the past 24 hours, breaking above $80,000 for the first time in several months and lifting its seven-day advance to roughly 25%. The broader CoinDesk 20 (CD20) index also rose 2.7% during the session.

The crypto market’s rally began last week after the U.S. Treasury announced plans to at least double its buybacks of longer-dated bonds. The move gained further momentum as stronger spot crypto demand and improving liquidity signaled “meaningful capital deployment,” according to Glassnode.

Despite the sharp recovery, Bitfinex analysts remained cautious. About $3 billion worth of crypto short positions were liquidated over two days, while activity on the Bitcoin network stayed close to eight-year lows.

Gold continued its upward move, reaching a three-month peak near $4,650 per ounce. Brent crude, meanwhile, dropped more than 2% over the previous 24 hours as markets appeared to look past Washington’s expanding pressure on Iran under its so-called “economic D-Day” campaign.

Derivatives Positioning

The rally has lost some momentum since the Asian trading session, but futures positioning remains tilted toward the bullish side. Long positions represented more than 51% of total taker flow. Takers are traders who execute orders against existing liquidity at the best available market prices.

Bitcoin traders also appear reluctant to take on significant leverage. BTC futures open interest remains around the low-700,000 BTC range after plunging during last week’s rally, when a wave of short liquidations forced bearish traders out of their positions. Lower leverage could support market stability because excessive leverage tends to amplify sharp moves in either direction.

Ether and XRP futures are showing a similar setup. Solana (SOL) open interest increased 4% over the past 24 hours to 66.14 million SOL, although it remains within its recent range. Fresh capital could enter the market more aggressively if SOL manages to break and hold above $100. The token has traded between roughly $70 and $100 since February.

CVD Signals Renewed Shorting

The 24-hour open-interest-adjusted cumulative volume delta (CVD) has turned negative across several major tokens, including BTC, ETH and ADA, indicating renewed selling pressure. The metric suggests traders are increasingly using market orders to establish short positions rather than relying on passive limit orders.

Options Volatility Eases

Options sellers appear to be returning to the market, limiting the rise in Bitcoin’s 30-day implied volatility index, BVIV. The gauge has fallen to about 45% from 49% on Friday. Ether’s volatility index has followed a similar trajectory.

Options Remain Bullish

Some options traders have spent millions positioning for Bitcoin to move rapidly above $82,000. Trading-volume rankings for both Bitcoin and Ether also point toward greater demand for call options and other upside exposure. However, seven-day options skews for both assets remain negative, indicating that traders continue to pay for downside protection, according to Laevitas.

Token Talk

Virtuals Protocol (VIRTUAL) led the market over the past 24 hours, gaining 12.5% after expanding its AI-agent tokenization platform to Solana. The integration allows AI agents to raise funds, establish fees and conduct transactions through dedicated wallets.

Stacks (STX) jumped 16%, the strongest gain among the highlighted tokens, despite no obvious project-specific catalyst.

Polygon (POL) advanced 12%, apparently following co-founder Sandeep Nailwal’s comments that the team is working on a proposal aimed at changing the network’s staking structure and tokenomics.

Injective (INJ) added 10%, extending its recent gains after an affiliated entity received SEC registration as a transfer agent. Solana also climbed 5.1%, supported by continued ETF inflows and progress on a network upgrade.

Aave (AAVE) and Ethena (ENA) moved against the broader market, dropping 8.5% and 6.4%, respectively, without any clear project-specific trigger. Morpho (MORPHO) declined 7.9%, while ether.fi (ETHFI) slipped 1.3% after posting a roughly 30% gain over the previous week.

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