Crypto traders are celebrating as Bitcoin has soared past the $119,000 mark, eyeing a potential record high. This surge has sparked excitement across the cryptocurrency market, with altcoins like Monero (XMR) and Aptos (APT) posting impressive double-digit gains. Particularly noteworthy is Zcash (ZEC), which has continued its upward momentum with a remarkable 58% increase over the past 24 hours, now priced at $143.
Catalysts Behind the Surge
Several factors have contributed to this bullish trend in the crypto markets. A significant driver is the inflow of funds into cryptocurrency exchange-traded funds (ETFs), reflecting growing institutional interest. Additionally, the rise in gold prices has bolstered investor confidence in risk assets, further fueling the positive sentiment in the crypto space.
Derivatives Market Dynamics
The Bitcoin futures market is showcasing a strong and sustained bullish trend. Open interest has reached an unprecedented $32.6 billion, indicating a substantial increase in trader exposure. Binance is leading the charge with $13.6 billion in open interest. These figures underscore the conviction-based bullish positioning that is driving recent price action, rather than mere short-term speculation.
Interestingly, the BTC options market presents a more nuanced picture. The 25 Delta Skew for short-term options continues to decline, currently standing at 3.25%. This suggests traders are willing to pay a premium for puts to hedge against downside risk. Conversely, the 24-hour Put/Call Volume indicates that calls dominate at over 56%, highlighting that a majority of traders are positioning for a rally.
Funding Rates and Market Health
Bitcoin’s funding rate on major exchanges varies between an annualized 9% to 10%, indicating healthy demand for leveraged long positions. However, Deribit stands out as an outlier, with its funding rate spiking dramatically to over 60%. This isolated spike suggests intense, concentrated demand for long positions on this platform. Despite this, the overall market, including altcoins, does not appear to be overheated. The average funding rate for the top 30 coins by market capitalization remains around 10% annualized, according to Coinglass.
Token Talk: The XPL Controversy
In other news, Plasma founder Paulie Punt has addressed circulating claims regarding the recently issued XPL token. Despite on-chain data suggesting otherwise, Paulie firmly denied that any Plasma team members have sold their XPL holdings since launch. He clarified that all investor and team allocations are subject to a three-year lock-up with a one-year cliff, preventing any access or sale within that period.
Paulie also disputed the notion that the Plasma team is predominantly composed of former Blast employees. Of the approximately 50 team members, only three have prior experience at Blur or Blast. The team is diverse, comprising professionals with backgrounds at renowned companies such as Google, Facebook, Square, Temasek, Goldman Sachs, and Nuvei, highlighting the project’s broad expertise.
Another point of contention involves Wintermute, a prominent crypto trading firm often engaged as a market maker for new projects. Paulie denied that Plasma had contracted Wintermute for market-making or other services, maintaining that the company has no more information about Wintermute’s XPL holdings than the public does.
Pseudonymous researcher ManaMoon initially claimed that over 600 million XPL tokens had been transferred from the project’s vault to exchanges since launch. Despite these allegations, XPL has not performed well; its price has slid from a high of $1.68 to $0.97, although daily trading volume has remained steady at $2.6 billion.
Looking Forward
As Bitcoin and altcoins continue their upward trajectory, traders and investors are closely monitoring the markets for potential record highs. The interplay between institutional interest, market dynamics, and external factors like gold prices will likely continue to shape the crypto landscape in the coming weeks.
While the surge in Bitcoin and altcoins brings optimism, the XPL controversy serves as a reminder of the complexities and challenges within the crypto world. As always, market participants should stay informed and exercise caution as they navigate the evolving landscape of digital assets.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
