Bitcoin Rebounds Above $81,000 as Tech Stocks Surge

Bitcoin Climbs Back Above $81,000

Crypto markets showed signs of recovery as Bitcoin (BTCBTC+1.30%) pushed back above $81,400 after dropping below $80,000 earlier in the week. This rebound came as traditional tech markets in Asia posted strong gains, boosting sentiment across digital assets.

Bitcoin rose about 0.8% since midnight UTC, while Ether (ETH) gained around 0.9% to trade near $2,490. While these price gains bring positivity, investors should remember that crypto markets remain subject to short-term price volatility.

Past performance of digital assets is not a guarantee of future results. You can track real-time market data on Bitkub Market.

Asian Chip Stocks Spark a Wider Market Rally

The market rebound was largely driven by a strong surge in the Asian semiconductor sector.

South Korea's Kospi index jumped 6.6%, led by memory chip maker SK Hynix, which surged roughly 11% after reporting a massive sevenfold increase in profits. US stock futures also joined the rally, with Nasdaq-100 futures gaining 0.5%.

This sudden jump in artificial intelligence and chip stocks helped bolster confidence across global financial markets, with positive momentum spilling into cryptocurrencies.

ETF Inflows and the Federal Reserve Decision

Institutional buying showed signs of recovery. US spot Bitcoin ETFs recorded $176 million in net inflows on Tuesday, marking a second consecutive day of positive capital flows according to data from Farside Investors.

At the same time, macro traders are keeping a close eye on the Federal Reserve. The US central bank is scheduled to announce its benchmark interest rate decision at 18:00 UTC.

Data from the CME FedWatch tool shows an estimated 92% chance that interest rates will remain unchanged. Traders will listen closely to Fed Chair Kevin Warsh's press conference for clues on future policy direction.

Major technology firms Alphabet (GOOG) and Microsoft (MSFT) are also set to report earnings after market close, which could further impact market trends.

Pepe Leads Memecoin Gains as Whales Hold Big

Memecoins saw notable activity, led by the frog-themed token Pepe (PEPE), which jumped 9.4% to lead the CoinDesk 100 Index.

The price rise coincided with a report from Arkham Intelligence revealing that crypto wallets linked to Tron founder Justin Sun hold around $51 million worth of PEPE. This makes him the largest individual holder outside of crypto exchanges.

Other memecoins also traded higher. Floki (FLOKI) rose 3.4%, while Dogecoin (DOGEDOGE+3.10%) gained 1.9%. The broader CoinDesk Memecoin Index advanced 1.3%, and CoinMarketCap's Altcoin Season Index climbed to 60/100 from 57.

AI and DeFi Tokens Take a Backseat

Interestingly, AI-linked crypto tokens failed to reflect the gains seen in traditional chip stocks for a second straight day.

Venice (VVV), a privacy-focused AI platform token, dropped 8.2%. Other AI tokens also moved lower, with Grass (GRASS) falling 3.3% and KiteKITE+0.00% declining 2.4%.

Decentralized finance (DeFi) tokens also underperformed. CoinDesk's DeFi Index (DFX) rose just 0.6%, lagging behind the broader CoinDesk 80 index gain of 0.9%.

Inside the Derivatives Market: Key Numbers

Derivatives trading saw increased volume without a sharp jump in overall market leverage. Here are the key stats from the past 24 hours:

• Trading Volume: Crypto futures volume grew 7.5% to reach $163.2 billion.
• Open Interest: Total open interest edged up by only 1.3%, indicating higher trading activity without major new leveraged exposure.
• Liquidations: Forced liquidations surged 38% to $183.6 million across the market.
• Taker Volume: Market orders were evenly split, with 50.7% buy longs and 49.3% sell shorts.

Bitcoin and EthereumETH+1.26% Futures Breakdown

Bitcoin futures rose 2.3% while open interest dropped 0.1%, suggesting the price increase was not built on fresh leveraged bets. Ethereum gained 2.7% as its open interest rose 1.7%.

Funding rates for both assets remained mild—0.0090% for BTC and 0.0079% for ETH—close to the neutral 0.01% baseline. However, BTC and ETH saw the largest liquidations in the market, standing at $56.4 million and $46.0 million respectively.

Altcoin and Commodity Derivatives Highlights

Several other assets recorded notable shifts in derivatives positioning:

• Zcash (ZEC): Open interest surged 14% alongside a 6.3% price increase, pointing to fresh capital entering the coin. Liquidations reached $8.6 million, the highest among altcoins.
• Gold vs. Gold Tokens: Traditional gold futures (XAU) saw open interest fall 10% despite a 1.4% price rise, signaling capital exit. Conversely, Tether Gold (XAUTXAUT+0.80%) open interest rose 11.6% alongside a 1.3% price gain, showing capital inflow.
• Crude Oil (CL): Oil futures open interest rose 3.3% while prices dipped 0.7%, paired with negative funding rates (-0.0135%), showing perp traders leaning short.
• Semiconductor Stocks: Leveraged chip ETF SOXL jumped 12% with a 2% open interest rise, while SK Hynix gained 8.7% and SanDisk climbed 7.1%.

Market Sentiment and Options Positions

Trading volume metrics point to bullish underlying sentiment. Most coins showed positive 24-hour Open-Interest-Adjusted Cumulative Volume Delta (CVD), meaning market buy orders outweighed sell orders.

Stellar (XLM) recorded the most positive CVD, whereas Tether Gold (XAUT) registered the most negative.

In the options market on Deribit, short-term downside concern eased. The one-week put-call skew for Bitcoin dropped to under 1%, down significantly from nearly 10% a week ago.

While short-term demand for put options has cooled, longer-term skews (1, 3, and 6 months) still show a clear preference for put protection. The $65,000 put expiring Oct. 30 was the most traded Bitcoin option, while the $3,400 call expiring Oct. 29 led Ethereum trading.