A relief-led rebound supported by recovering U.S. equities helped BTC and ETH recover from weekly lows, but bearish derivatives positioning and negative CVD trends suggest the bounce may be fragile.

The crypto market showed signs of stabilization on Thursday, with Bitcoin (BTC) rising 1.1% since midnight UTC after briefly dropping below $60,000 on Wednesday—its lowest level since October 2024.

Despite the rebound, Bitcoin remains at a critical technical zone, where a breakdown could expose downside toward $52,000. For now, price action suggests a temporary pause in selling pressure.

Ether (ETH) also bounced, rising 1.5% to around $1,644 after briefly sliding to $1,550 during Wednesday’s late-session decline.

The recovery in digital assets tracked gains in U.S. equity futures, with the S&P 500 up 0.7% and the Nasdaq 100 advancing 2.2%.

Derivatives positioning

Bitcoin briefly retested the $59,000 area on Wednesday before recovering above $61,000, with sharp volatility triggering widespread liquidations across leveraged futures. Nearly $1 billion was wiped out in 24 hours, with long positions accounting for the majority of losses.

BTC futures open interest has climbed to 763K BTC, the highest since early June, after previously holding steady near 730K BTC. However, the rise is not purely bullish, as funding rates have turned negative, signaling increased demand for downside exposure.

Ether futures show little change in open interest, with funding still slightly positive. Solana (SOL) remains near record-high open interest with neutral funding, while XRP also shows balanced positioning near recent highs.

Across major assets, the OI-adjusted 24-hour cumulative volume delta remains negative for a third straight session, indicating aggressive selling via market orders continues to dominate price action.

Volatility metrics have eased, with Bitcoin’s 30-day implied volatility index (BVIV) dropping from 51% to 46%, reflecting lower demand for protection and helping support the short-term rebound. Ether’s implied volatility (EVIV) has followed a similar path.

Still, ETH continues to trade at a volatility premium over BTC, with implied volatility roughly 10 points higher across maturities.

Options skew remains heavily skewed toward downside protection, with Bitcoin’s one-week skew showing about a 25-point premium for puts, highlighting persistent demand for hedges despite the bounce.

Token activity

Altcoins saw a sharp but uneven rebound following Wednesday’s selloff, reflecting thin liquidity conditions.

Jupiter (JUP) dropped more than 12% in six hours before rebounding over 18%, underscoring extreme volatility and forced liquidations on both sides.

Overall, about $1 billion in crypto futures positions were liquidated in the past 24 hours, with roughly $585 million tied to altcoin markets.

DeFi tokens such as AAVE and ETHFI outperformed, gaining 2.5% and 4.7%, respectively.

AI-linked tokens lagged, with RENDER and NEAR declining between 0.8% and 1.9% despite broader market strength.

Solana (SOL) fell to $64 on Wednesday, extending a 75% drawdown since September. A break below the June 6 low of $60 would mark its weakest level since December 2023.