Zcash Hits 16-Month High as Altcoins Lead Crypto Market Rally
The crypto market saw a rise on Wednesday, with bitcoin up 2.9% and ether increasing by 3.1%. The altcoin market was particularly active, as investors speculated on an "altcoin season." ZEC reached its highest level since May 2022, with several DeFi tokens also experiencing gains.
Derivatives Positioning
- The BTC futures market shows a bullish trend, with open interest at $31.69 billion. Binance leads with $13.19 billion. The 3-month annualized basis remains strong between 6% and 7%, indicating robust yield from basis trades.
- The BTC options market is mixed. Short-term options' 25 Delta Skew is low, but Put/Call Volume shows bullish speculation, with calls making up 63.54% of total volume.
- Funding rates are positive across major exchanges, with Deribit's rate at 17%, indicating strong demand for leveraged long positions.
- Coinglass data reports $644 million in liquidations over 24 hours, with notable liquidation levels on Binance.
Token Talk
- Zcash (ZEC) surged to $97.25 before settling around $92.00, marking a 41% daily increase. Trading volume rose 36% to $300 million.
- Other altcoins like ethena (ENA), curve (CRV), and raydium (RAY) increased by over 8%.
- The U.S. government shutdown has weakened the dollar and boosted gold prices, aiding crypto recovery.
- Altcoins outperformed bitcoin, but the average crypto relative strength index (RSI) suggests potential market consolidation soon.
- Aster, a token on BNB Chain-based perpetual exchange, fell 6.8% amid fading hype.