Crypto markets edged higher on Wednesday, but declining futures open interest and uneven altcoin performance suggest traders are reducing exposure rather than aggressively chasing the rebound.

The broader market remained cautious after Bitcoin (BTC) failed to break above $83,000 last week, leaving it in a consolidation phase. BTC was recently trading near $77,400, up 0.7% since midnight UTC, but still working to recover from a 5% weekly decline.

Ether (ETH) led gains among major assets, rising 1% to $2,130, while altcoins showed mixed performance. CHZ, TON, and ATOM fell between 1% and 3%, whereas DASH, STRK, and PYTH gained around 5%.

In traditional markets, U.S. equities slipped on Tuesday as volatility in the bond market weighed on sentiment. Investors are now awaiting Nvidia (NVDA) earnings after the close, seen as a key driver for broader risk appetite.

Crypto derivatives activity continued to cool. Total 24-hour futures volume fell 29% to $142.76 billion, while open interest remained stable at roughly $127 billion. Liquidations declined for a second consecutive session, dropping 47% to $153 million.

Bitcoin futures positioning showed subtle de-risking. Combined USD and USDT-denominated BTC open interest slipped to 257,000 BTC across major exchanges, while global BTC futures open interest edged down to 744,000 BTC, down about 1,000 BTC. The move suggests traders are trimming leverage into strength rather than adding fresh long exposure.

XRP moved differently from the broader market. Open interest rose more than 5% to 2.15 billion XRP, the highest since October 11, alongside rising spot prices—often a sign of strengthening momentum. However, XRP’s 24-hour cumulative volume delta remained heavily negative, indicating aggressive selling pressure and suggesting some traders may be fading the move.

Zcash (ZEC) continued to outperform, with open interest rising for a third straight day to 2.27 million tokens. The token rallied from $486.60 to $586 and confirmed a “golden cross,” where the 50-day moving average moves above the 200-day moving average, a signal often associated with longer-term bullish trends.

Ether derivatives activity also remained elevated, with open interest climbing back above 15 million ETH and nearing the May 16 record of 15.52 million. Despite positive funding rates, negative volume delta signals point to a mixed and indecisive market structure.

Hyperliquid’s HYPE token showed a notable divergence, with annualized funding at -36.85% even as price held near $48.85, its highest level since late October. The setup suggests futures shorts are being used more as hedges than outright bearish bets.

Volatility across major cryptocurrencies remains muted, with Bitcoin and Ether implied volatility near yearly lows despite ongoing macro uncertainty. Deribit analysts noted that Bitcoin volatility appears relatively cheap, with long straddle strategies seen as a way to position for a potential large move in either direction.

Options flows reinforced this cautious tone, including Bitcoin put ratio spreads and Ether call spreads among recent block trades.

Among altcoins, XDC led gains with a 12% rise since midnight, supported by a 44% jump in trading volume tied to renewed interest in real-world asset (RWA) narratives. DASH also extended its uptrend, gaining 10% over 24 hours with a structure of higher highs and higher lows since early April.

Overall sentiment weakened slightly, with CoinMarketCap’s “Altcoin Season” index slipping to 34/100 from last week’s peak of 50/100, signaling a shift back toward Bitcoin-led market structure.