Crypto markets advanced on Friday, with total market capitalization rising to $3.042 trillion as Bitcoin reclaimed the $85,000 level, and pushed toward $86,000. Easing US Treasury yields and a sharp short squeeze improved near-term risk sentiment across the market, while major cryptocurrencies traded higher.
Total crypto trading volume over the past 24 hours stood at around $107 billion. Bitcoin accounted for 56.8% of the market, compared with 10.9% for Ethereum, according to CoinGecko data.
Bitcoin was trading at $85,969.40, up around 2% over the past 24 hours, with trading volume of $38.69 billion. The cryptocurrency traded between $83,181.61 and $86,794.25 during the period. Its weekly trading range stood at $82,581.43 to $86,794.25.
At current levels, Bitcoin remained about 31% below its all-time high of $126,080, with a total market capitalization of approximately $1.727 trillion.
Short squeeze drives Bitcoin higher
Bitcoin's advance above $85,000 was accompanied by a sharp move across derivatives markets, with short sellers facing significant liquidations as the cryptocurrency pushed higher.
Riya Sehgal, research analyst at Delta Exchange, said Bitcoin had regained momentum as easing Treasury yields and an aggressive short squeeze improved near-term risk sentiment.
More than $200 million in short positions were liquidated over the past 24 hours, Sehgal said, while rising open interest suggested that fresh leverage was also entering the market.
The move higher came despite roughly $150 million in Bitcoin ETF outflows, indicating that the latest advance was driven more by technical momentum and market positioning than renewed institutional flows, according to Sehgal.
Bitcoin is now testing the $86,200-$88,000 supply zone. Sustaining levels above $85,800-$86,200 could strengthen the breakout, while $84,800-$85,000 represents the first key support zone if the market pulls back.
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Ethereum holds above $2,700
Ethereum also traded higher on Friday, although its gains were more modest than Bitcoin's.
Ether was priced at $2,719.61, up 0.2% over the past 24 hours, with trading volume of approximately $15.60 billion. The asset traded between $2,674.08 and $2,744.54 during the period, while its weekly range stood at $2,636.99 to $2,744.54.
At current levels, Ethereum remained about 45% below its all-time high of $4,946.05, with a total market capitalization of approximately $332.05 billion.
Sehgal said Ethereum had also moved above the $2,700 level, with $2,740 emerging as the next resistance, followed by the $2,760-$2,780 zone.
U.S. jobs data comes into focus
The next major catalyst for crypto markets could come from U.S. economic data, with investors watching jobs figures for their potential impact on Treasury yields and the dollar.
“Attention now shifts to U.S. jobs data, particularly its impact on Treasury yields and the dollar, which could determine whether this crypto rebound develops into a more durable move,” Sehgal said.
Meanwhile, Dolphin, Commander VRAX, Quant, Bitcoin and NEAR Protocol were among the top-trending cryptocurrencies on CoinGecko on Friday as market activity remained elevated.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
