Bitcoin Recovers to $87K as Altcoins Gain Amid Equities-Driven Risk Appetite

Bitcoin BTC climbed back above $87,000 on Tuesday, gaining 1.8% over 24 hours to $87,250, as improving risk sentiment and a strong equities session boosted the broader crypto market.

BTC’s rebound paved the way for outsized altcoin gains, with SUI, ENA, BONK, and CC each rising more than 8% as investors sought more speculative opportunities. Despite the short-term recovery, longer-term charts remain bearish, with Bitcoin and Ether ETH continuing to form lower highs and lower lows since early October.

Much of the upside can be attributed to crypto’s correlation with U.S. equities. The Nasdaq Composite posted its largest daily gain since May on Monday, signaling renewed appetite for risk assets.

Volatility measures also point to easing near-term uncertainty. Bitcoin’s 30-day implied volatility index (BVIV) fell to 55% from Friday’s 65%, though levels remain elevated by historical standards. On Deribit, BTC put skews remain intact, reflecting persistent downside concerns, while ETH options show bullish sentiment for expiries after August 2026.

Interest in Bitcoin call options around $100K has grown, lifting notional open interest to $2 billion, on par with $85K and $80K puts. BTC call condors dominated 24-hour block flows, targeting a potential range play above $100K. In ETH, strangles were the most active trade, while options tied to BlackRock’s IBIT ETF saw 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, open interest in USDT- and USD-denominated BTC perpetuals declined, suggesting muted participation in the price bounce. BTC perpetual funding rates turned negative for the first time in over five weeks, indicating a net bias toward short positions.

The altcoin market also showed life, with SUI and ENA rising more than 11% after a week of declines. ETH traded at $2,880, up 3.3%, while daily volume increased 13% to $27.3 billion. A sustained rally above $3,500 could signal the start of a bottoming pattern.

Some sectors lagged. Zcash (ZEC) fell 6.6% after cooling off from a two-month rally, and DASH also weakened despite the broader market’s gains. The average crypto RSI remains neutral at 50.34, reflecting indecision amid contrasting negative sentiment and positive price action this week.