Bitcoin staged a firm rebound overnight, climbing as much as 3.7% before giving back part of the advance. Even with the pullback, sentiment across digital assets improved, with altcoins leading gains and the altcoin season indicator rising to its highest level since January.

BTC traded erratically during Asian hours but remains about 2.4% higher since midnight UTC, changing hands near $65,600. The cryptocurrency continues to move within the narrow band that has contained prices for the past three weeks, signaling a market still searching for direction.

Strength was more pronounced across the altcoin complex. Layer-1 networks solana (SOL) and cardano (ADA) each posted gains of roughly 4.5%, while VIRTUAL, MORPHO and ETHFI surged more than 10%, reflecting renewed appetite for higher-risk tokens.

Broader financial markets mirrored the tone. U.S. equity index futures edged higher alongside crypto, while silver climbed around 4% since midnight — a sign that the rally may be driven more by speculative positioning than by a specific news event.

On the technical front, the average crypto relative strength index (RSI) has rebounded from oversold conditions into neutral territory. That shift suggests downside momentum has cooled, though consolidation could follow as traders reassess positioning.

Derivatives update

Aggregate crypto futures open interest rose over 1.5% to $93.5 billion. However, most of the increase appears tied to higher spot prices rather than meaningful fresh inflows into leveraged positions.

Open interest in bitcoin and ether (ETH) futures was broadly unchanged over the past 24 hours. In contrast, futures linked to tether gold (XAUT) recorded a 12% decline in open positions, pointing to capital rotating out of gold-backed exposure.

TRX, AVAX, SOL, LINK and HBAR showed the strongest 24-hour cumulative volume delta (CVD) readings, indicating that buy-side activity outpaced selling pressure in those markets.

Bitcoin’s 30-day annualized implied volatility index (BVIV) dropped back to 56%, reversing an earlier spike to 65% earlier in the week and signaling calmer conditions. Ether’s volatility followed a similar pattern, potentially supportive of continued price stabilization.

On Deribit, the $60,000 bitcoin put option is now the most actively held contract, highlighting ongoing demand for downside protection. Across BTC and ETH options markets, puts continue to command higher premiums than calls, underscoring persistent caution among traders.

Altcoin highlights

The altcoin season indicator climbed to its strongest reading since early January, buoyed by broad-based gains.

AI-focused token VIRTUAL led the rally, rising 15.5% since midnight and more than 20% over the past 24 hours, making it the top performer within the CoinDesk 80 (CD80) index, which gained 1.7%.

Restaking protocol ETHFI advanced more than 10% after CEO Mike Silagadze hinted at the possible launch of a stablecoin.

Morpho’s native token added 15% on the day, extending its 30-day gain to 45.9% and capping off the session’s altcoin surge.

Meanwhile, toncoin (TON) and pippin (PIPPIN) retreated over the past 24 hours after earlier gains this week, reflecting ongoing portfolio rotation among traders and investors.