Crypto market recap: Bitcoin climbs toward $97K

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Highlights

Bitcoin pushed toward ~$97K as spot Bitcoin ETF inflows reportedly hit ~$840M, led by BlackRock.
Open interest fell ~30%, flushing leverage and improving market structure for a cleaner rebound.
Sentiment turned “Greed,” while early signs of altcoin rotation emerged, led by renewed interest in privacy coins.

The rally coincided with a reported surge in spot Bitcoin ETF inflows of about $840 million on the day, strengthening the market’s “institutional bid is back” narrative and putting a fresh spotlight on accumulation-led price action. Momentum extended beyond Bitcoin, with Ethereum holding above $3,360 and Solana hovering near $145, signaling a broader risk-on tape rather than a narrow, BTC-only move.

Market sentiment improved sharply, with the Fear & Greed gauge pushing deeper into “Greed” territory and marking the strongest reading in around two months. Volume remained supportive, suggesting participation has been more than just thin liquidity pushing prices higher. Even with some mixed action among large caps like XRP intraday, the overall structure remained constructive, as multiple assets printed higher highs and maintained upward bias. Traders are now focused on whether Bitcoin can defend the psychologically important $97K level and convert it into support. If ETF inflows remain steady, dips may continue to be absorbed quickly, keeping the recovery intact into upcoming macro catalysts.

Leverage flush resets derivatives risk and steadies volatility

At the same time, derivatives positioning moved in the opposite direction, with open interest dropping roughly 30% in what many analysts consider a bullish reset for market structure. A sharp decline in open interest typically implies that leverage has been flushed out, reducing the risk of cascading liquidations that can abruptly interrupt an uptrend. In practice, rallies driven by spot accumulation and rising inflows are generally viewed as healthier than moves fueled primarily by crowded futures longs. This dynamic may also explain why volatility has stayed relatively controlled despite the upside push, as forced liquidation pressure appears to have eased rather than intensified.

Average crypto RSI readings stayed in a neutral-to-firm range, implying the market may still have room to extend without immediately flashing extreme overbought conditions. Still, traders will likely monitor how quickly open interest rebuilds, since an aggressive leverage rebound can reintroduce fragility and increase liquidation sensitivity. For now, the combination of strong spot demand alongside cooler derivatives exposure is being interpreted as supportive rather than threatening. If open interest returns gradually while inflows remain elevated, the path higher could look cleaner than recent squeezes that relied on leverage.

Rotation starts to emerge as privacy coins catch a bid

Beneath the headline Bitcoin move, market breadth is beginning to show signs of rotation, with privacy coins and select sectors drawing attention as risk appetite returns. Monero’s sharp upside action has stood out as traders scan for lagging narratives that can outperform when sentiment improves and liquidity broadens. Meanwhile, majors like ETH and SOL continuing to hold firm tends to provide a base layer for wider altcoin participation, helping prevent the rally from narrowing too quickly into a single-asset trade. The altcoin season score remains relatively low, suggesting Bitcoin is still leading the cycle, but improving breadth hints that the next leg could become more evenly distributed across higher-beta names.

If Bitcoin consolidates near highs instead of rejecting sharply, that often creates space for rotation trades to extend as capital searches for additional upside opportunities. However, alt momentum remains highly sensitive to any slowdown in ETF-driven spot demand, since Bitcoin continues to set the tone for liquidity conditions and market confidence. The setup looks constructive, but it can turn fragile if momentum fades and traders shift back into defensiveness. The key technical focus remains whether Bitcoin can hold the $97K area, because strength there would likely keep rotation trades alive and encourage broader participation.

Recently we wrote that the adoption of the Digital Asset Market Clarity Act (CLARITY Act) in the US Congress has been delayed, as lawmakers acknowledge that its impact on digital asset markets is global and requires careful consideration of the interests of financial market participants.

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