Crypto markets advanced on Wednesday, with bitcoin, ether and a range of altcoins moving higher, though derivatives data suggests the rally may lack strong underlying conviction.

The gains came as oil prices briefly fell below $100 per barrel after U.S. President Donald Trump said the Iran conflict could end within “two to three weeks,” helping lift broader risk sentiment.

Bitcoin (BTC) traded near $68,500, up 0.4% since midnight UTC and around 3.1% over the past 24 hours. Ether (ETH) climbed back to $2,130 after dipping below $2,000 last week.

Despite the rebound, the broader crypto market remains in a downtrend that has persisted since October. However, sentiment has modestly improved following a consolidation phase between $62,500 and $75,000 that has held since early February.

Altcoins outperformed, led by algorand (ALGO), which surged 22% over the past 24 hours as it rebounded from oversold conditions. DeFi tokens also posted strong gains, indicating pockets of renewed risk appetite.

Derivatives positioning

Futures market data points to a lack of aggressive positioning. Trading volumes rose 23% over the past day to $210 billion, while open interest remained largely unchanged at around $106 billion.

This divergence suggests the rally is being driven more by spot buying and short covering than by a buildup in leveraged long positions.

Ether saw a slight uptick in open interest alongside its price, signaling some participation from leveraged traders. ETH and ZEC stood out with positive open interest-adjusted cumulative volume delta (CVD) and funding rates, indicating active long positioning in those markets.

In contrast, ADA, XMR, BCH and SHIB showed weaker derivatives signals, reflecting limited conviction behind their price moves.

Options markets remain relatively calm. Implied volatility for both BTC and ETH is subdued, while risk reversals on Deribit continue to favor put options, highlighting persistent demand for downside protection. Bearish sentiment appears somewhat stronger in bitcoin options.

Token performance

Among sector indices, the CoinDesk Computing Select Index (CPUS) led gains, rising 2.7%. The Smart Contract Platform Select Capped Index (SCPXC) and the DeFi Select Index (DFX) each advanced 1.5%.

Broader indices lagged behind, with the CoinDesk 5 (CD5) up 0.35% and the CoinDesk 20 (CD20) gaining 0.69%, indicating that large-cap assets underperformed relative to the wider altcoin market.

Algorand (ALGO) was the standout performer, followed by DeFi tokens MORPHO and JUP, both of which posted double-digit gains.

However, the uneven rise in open interest—particularly in ETH and ZEC—suggests that parts of the rally are being supported by leverage rather than broad-based demand. This leaves the market vulnerable to a pullback, especially if new developments contradict Trump’s remarks and shift sentiment.