Bitcoin hovers around $77,400 as derivatives markets flash signs of caution.

Crypto markets traded slightly higher on Wednesday, but easing futures open interest and uneven altcoin performance suggest traders are de-risking rather than fully embracing the rebound.

The broader market remained cautious after Bitcoin (BTC) failed to break above $83,000 last week, leaving it to consolidate around key support levels. BTC was recently trading near $77,400, up 0.7% since midnight UTC, following a 5% weekly decline.

Ether (ETH) outperformed Bitcoin with a 1% gain to $2,130, while altcoin performance remained mixed. Tokens such as CHZ, TON, and ATOM fell between 1% and 3%, whereas DASH, STRK, and PYTH each posted gains of around 5%.

In traditional markets, U.S. equities slipped on Tuesday amid weakness in the bond market, with investors now focusing on Nvidia’s (NVDA) earnings release scheduled after Wednesday’s close.

Crypto derivatives activity also cooled. Total 24-hour futures volume dropped 29% to $142.76 billion, while open interest held relatively steady at around $127 billion. Liquidations eased for a second consecutive session, falling 47% to $153 million.

On a broader basis, cumulative Bitcoin futures open interest in USD and USDT contracts across major exchanges slipped to 257,000 BTC. Global BTC futures open interest edged down to 744,000 BTC, a decline of about 1,000 BTC. The shift suggests traders are scaling back exposure into price strength rather than adding leverage.

XRP showed a different dynamic. Open interest rose more than 5% to 2.15 billion XRP, the highest level since October 11, while spot prices also advanced. This combination typically signals trend confirmation. However, XRP’s 24-hour cumulative volume delta was the second most negative among major assets, indicating aggressive selling pressure via market orders and suggesting some traders may be fading the rally.

Zcash (ZEC) continued to stand out, with open interest rising for a third straight day to 2.27 million tokens as its price recovered to $586 from a recent low of $486.60. The chart also shows a golden crossover between the 50-day and 200-day simple moving averages, often associated with longer-term bullish momentum.

Ether derivatives activity remains active, with open interest climbing back above 15 million ETH and nearing its May 16 record of 15.52 million. While funding rates remain positive, negative volume delta readings point to a mixed market structure, leaving directional conviction unclear.

Hyperliquid’s HYPE token showed one of the most notable divergences, with an annualized funding rate of -36.85% despite trading at $48.85, its highest level since October 30. The negative funding alongside rising prices suggests traders may be shorting futures as a hedge against spot exposure rather than taking outright bearish positions.

Volatility remains subdued across major crypto assets, with Bitcoin and Ether implied volatility hovering near year-to-date lows despite rising macro uncertainty in U.S. rates markets. Deribit analysts noted that Bitcoin volatility appears relatively cheap, with long straddles positioned as a potential way to trade an expected breakout in either direction.

Options flows reflected this positioning, including Bitcoin put ratio spreads and Ether call spreads among recent block trades.

Among altcoins, XDC emerged as a top performer, rising about 12% since midnight on a 44% surge in trading volume, driven by strength in real-world asset (RWA) narrative exposure. DASH also outperformed, gaining 10% over 24 hours and extending a clear uptrend from early April marked by higher highs and higher lows.

Finally, the broader market sentiment cooled, with CoinMarketCap’s “Altcoin Season” index slipping to 34/100, down sharply from last week’s peak of 50/100.

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