Crypto Rallies as Treasury Yields Dip Below 5 Percent
Bitcoin climbs past $78,000 while layer-two tokens surge. Falling bond yields and oil prices drive the risk-on rotation.
The 10-year US Treasury yield fell below 5 percent. This macro shift triggered a broad advance across the cryptocurrency market. Bitcoin rose 2.1 percent to trade above $78,000 during European trading hours. The price action marks a recovery from the recent range-bound period. It remains 5 percent below the monthly high of $82,284 recorded on September 4. The move signals a return to risk-on trading conditions after the Federal Reserve rate hike.
Layer-two and decentralized finance assets led the gains. Starknet increased 18 percent while Arbitrum rose 17 percent. Uniswap climbed 13 percent, contributing to an 8.3 percent surge in the DeFi Select Index. Ninety-eight of the 100 constituents in the CoinDesk 100 index advanced on the day. Brent crude oil dropped below $103, alleviating inflation fears. Equity futures also strengthened, with the S&P 500 up 0.3 percent and the Nasdaq 100 up 0.6 percent.
Futures open interest expands to record levels
Cumulative open interest in the crypto futures market expanded by nearly 5 percent. The total reached $141.2 billion despite a 3 percent dip in daily trading volume to $95 billion. This pattern suggests structural capital inflow rather than momentum chasing. Bitcoin futures open interest increased to 680,000 BTC from 670,000 BTC since midnight. The rise aligns with the price advance, indicating a build-up of long positions. However, this figure remains well below the early-year peak of 800,000 BTC. Overall positioning stays light relative to previous highs.
Uniswap futures open interest surged to 86.61 million tokens. This level is near an all-time high, up from 76.89 million tokens the previous day. The expansion coincides with a 30 percent explosion in the token's spot price. Market optimism stems from expectations of coordinated regulations by the SEC and CFTC. Bullish momentum is visible in volume data. The 24-hour OI-adjusted cumulative volume delta is positive for most major tokens. This indicates bulls are using aggressive market orders rather than passive limit orders.
Volatility contracts as macro events clear
Bitcoin's annualized 30-day implied volatility index dropped to 36 percent. This level matches the floor seen since May. The decline reflects the clearing of major macro events. The Clarity Act vote has concluded. The Federal Reserve and Bank of Japan interest-rate meetings are out of the way. Traders are reducing hedging costs as uncertainty diminishes. The softer macro backdrop supports sustained price discovery in digital assets.
