Bitcoin Sparks Crypto Rally, Altcoins Follow in Ongoing Market Downtrend

Bitcoin Surges to $87K as Altcoins Rebound Amid Improving Risk Appetite

Bitcoin BTC regained footing on Tuesday, climbing 1.8% to $87,250 as optimism returned to the crypto market following recent weakness. The rebound helped lift major altcoins, with SUI, ENA, BONK, and CC each rising more than 8% as traders embraced higher-risk assets.

Despite the short-term rally, the broader trend remains bearish. Bitcoin and Ether ETH continue to form lower highs and lower lows, confirming a downtrend from early October.

The crypto recovery was supported by broader market strength. The Nasdaq Composite posted its largest daily gain since May on Monday, signaling renewed appetite for risk assets. BTC’s 30-day implied volatility (BVIV) eased to 55% from Friday’s 65%, indicating reduced near-term uncertainty, though volatility remains elevated historically.

Options activity shows mixed sentiment. BTC put skews remain elevated, reflecting ongoing downside concerns, while interest in $100K calls has risen, lifting notional open interest to $2 billion, matching key put strikes at $85K and $80K. Call condors dominated 24-hour block trades, targeting a potential range above $100K, whereas ETH saw strangles as the preferred strategy. Options linked to BlackRock’s IBIT ETF also showed renewed demand for upside calls, though overall skews still favor protective puts.

In futures markets, XRP led the top five coins with a 12% increase in open interest to 1.84 billion XRP, the highest since October 11. Meanwhile, BTC perpetual futures saw declining open interest and funding rates turned negative—the first time in over five weeks—indicating a net short bias.

Among altcoins, SUI and ENA surged over 11%, while Ether gained 3.3% to $2,880, with daily volume climbing 13% to $27.3 billion. ETH could begin forming a bottom if it sustains levels near $3,500.

Some tokens lagged. Zcash (ZEC) fell 6.6%, and DASH also weakened, even as the wider market showed strength. The average crypto RSI remains neutral at 50.34, reflecting market indecision amid mixed signals from price action and sentiment.