Bitcoin has once again climbed above the $110,000 mark, marking its second straight day of gains, likely boosted by significant upward movements in altcoins. Over the past 24 hours, Bitcoin has increased by approximately 0.9%, trading just above $110,000 shortly after the U.S. stock markets closed on Tuesday. The CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market cap (excluding stablecoins and memecoins), has surged by 3.3%, driven mainly by ether, solana, and chainlink, each gaining between 5% and 7%. Notably, Uniswap and Aave led the charge with impressive jumps of 24% and 13%, respectively, fueled by optimistic comments from SEC Chair Paul Atkins regarding DeFi on Monday.
Market activity has remained relatively subdued on the equities side, with most crypto-related stocks flat for the day. An exception is Semler Scientific, which aims to accumulate as much Bitcoin as possible similar to MicroStrategy. Its shares dropped another 10%, now trading below the value of the Bitcoin it holds on its balance sheet.
Despite the recent gains, market sentiment remains cautious. Experts note that funding rates and leverage indicators suggest a defensive stance among traders. Vetle Lunde, head of research at K33 Research, pointed out that the overall risk appetite is weak, even though Bitcoin is trading near its previous all-time highs. Binance’s BTC perpetual swaps have shown negative funding rates over several days, with the current annualized rate at just 1.3%. Historically, such negative funding rates often signal market bottoms rather than peaks, and past instances have sometimes preceded rallies rather than corrections.
Additionally, flows into leveraged Bitcoin ETFs, like the ProShares 2x Bitcoin ETF, which currently holds the equivalent of around 52,435 BTC—well below its peak holdings—remain modest. This cautious positioning leaves room for a potential healthy rally in Bitcoin, though some analysts remain skeptical about whether this move signals a sustainable breakout. Kirill Kretov, senior automation expert at CoinPanel, suggests that the current rally may simply be part of ongoing volatility, with a sharp decline possible if negative news or shifting narratives emerge.
Kretov highlights that technical support levels are around $105,000 and $100,000, which could be tested if selling pressure intensifies. Overall, while the market shows signs of resilience, experienced traders are advised to navigate the volatility carefully, as the environment remains unpredictable.
