Bitcoin (BTC) rose to $77,000 on Tuesday, reflecting a 1% increase since midnight UTC, as improved risk sentiment buoyed the cryptocurrency market. However, BTC faced resistance near $78,300, with spot sellers preventing a breakout. Meanwhile, altcoins struggled following a $290 million attack on KelpDAO, with Ethereum (ETH) rising only 0.3% to $2,320.
The derivatives market showed a balanced long/short ratio of 50.68%, indicating a cautious stance among traders. Open interest for major tokens like BTC, SOL, and BNB increased by 1%-3%, while ETH, DOGE, and ZEC saw slight declines. Despite negative funding rates for BTC and ETH, suggesting a bearish bias, potential for a short squeeze remains. Trading activity in Bitcoin futures at the CME has cooled, while ETFs continue to attract significant inflows.
The altcoin market remains volatile, with DeFi tokens like Ethena (ENA) and EtherFi (ETHFI) posting losses. The CoinDesk Memecoin Index fell 0.24%, while the Bitcoin-dominated CoinDesk 20 Index rose 0.65%. AAVE recovered 2.6% after a weekend drop, as the "Altcoin Season" indicator rose slightly to 39/100, signaling continued investor preference for Bitcoin.
Bitcoin Climbs Amid Improved Risk Sentiment; Altcoins Struggle Post-KelpDAO Attack
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