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New Fed Chair Kevin Warsh Will Cut Interest Rates: Analyst

Kevin Warsh, who was sworn in as the chairman of the United States Federal Reserve on Friday, will likely slash interest rates, despite the “consensus” view that he will raise interest rates, according to author, Bitcoin investor and market analyst Lawrence Lepard.

Lepard said that comments from other US officials, including Kevin Hassett, the director of the White House National Economic Council, and Treasury Secretary Scott Bessent, support the likelihood of rate cuts in 2026. He added: 

“Warsh will cut. He will use the AI productivity and trimmed inflation excuses and will claim that all the war inflation is transitory. Two data points from today’s Wall Street Journal support this view.” 

Source: Lawrence Lepard

During Warsh’s swearing-in ceremony on Friday, US President Donald Trump said that the US would tackle its rising national debt through “growth,” signaling an expansion of the monetary supply and a lower interest rate regime.

Investors, traders, and analysts continue to debate about Warsh’s impact on interest rate policy and whether he will cut interest rates, which would boost risk-on asset prices, including Bitcoin and crypto.

Related: Odds against rate cuts high as new US Fed chair set for swearing in

Traders forecast rate hikes in 2026, as uncertainty mounts over new Fed chair

Nearly 68% of traders have priced in an interest rate hike of 25 basis points (BPS) or more by December 2026, according to the Chicago Mercantile Exchange (CME) Group’s FedWatch tool.

“We want to stop inflation, but we don’t want to stop greatness,” Trump said on Friday, which was met with skepticism from investors, economists and market analysts.

Kevin Warsh gives his acceptance speech at his swearing-in ceremony on Friday. Source: The White House

In April, US lawmakers scrutinized Warsh’s commitment to preserving Federal Reserve independence, casting doubt on whether Warsh would resist pressure from the Executive Branch to loosen monetary policy.

Senator Elizabeth Warren said that Warsh’s appointment could create potential conflicts of interest, in which the Trump family’s crypto businesses benefit from policies enacted by the new Fed chair.

Meanwhile, Bitcoin, crypto and stock investors could face several months of declining asset prices following the Fed’s leadership transition, as uncertainty over interest rate policy grows. 

Magazine: Is China hoarding gold so yuan becomes global reserve instead of USD?

BTC set to outperform after long, difficult stretch versus traditional assets

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Bitcoin may be entering a new period of outperformance against traditional assets as inflation pressures persist and bond markets weaken, according to Risk Dimensions chief investment officer Mark Connors.

Connors, who spent years as the global head of portfolio management at Credit Suisse, said bitcoin recently broke out of what had been its longest stretch of underperformance against the S&P 500 in history, a 142-day period that ended in early May.

“I think bitcoin’s underperformance versus markets is over,” Connors said in an interview. “It’s in the consolidation phase [that] has shifted into an outperformance phase.”

The shift comes as investors grapple with stubborn inflation, rising oil prices and uncertainty around interest rates. Connors argued that bonds, traditionally viewed as defensive assets, are increasingly under pressure as markets adjust to a “higher-for-longer” rate environment.

“Bitcoin, as it always does, takes it on the chin early, but then it always comes out first,” he said, adding that bitcoin could continue outperforming both equities and fixed income “as we grind through the straits of poor news and oil persistently being high.”

Connors tied much of the current macro environment to persistent geopolitical tensions and elevated energy prices. Oil has remained structurally high this year, he said, fueling inflation concerns while forcing markets to look toward technology and productivity gains as a counterweight.

He argued that AI and blockchain are becoming increasingly linked as businesses look for decentralized systems to support machine-driven transactions and automation.

“The only way to punch through that inflationary pressure is through technology,” Connors said.

He also pointed to shifting investor preferences between gold and bitcoin. Connors compared the current environment to 2020, when gold initially outperformed during the early stages of the pandemic before bitcoin began a strong resurgence.

“Gold has had its run,” he said. “Bitcoin is now on its resurgence.”

Hyperliquid Whale Refuses to Close HYPE Short Despite Being Down $22M

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A Hyperliquid (HYPE) whale is refusing to close a massive short position even as the token’s rally leaves the trader sitting on more than $22 million in unrealized losses.

Key takeaways:

  • HYPE’s 134% year-to-date rally, rising ETF inflows and fresh whale accumulation may deepen squeeze pressure on the short seller.
  • Technical setups suggest a potential 20% pullback toward $51.5–$45.

HYPE whale increases short exposure to over $100 million

As of Thursday, the wallet ‘0x8ef…’ held a 5x cross-margin short on 1.80 million HYPE, worth about $102.98 million, with an entry price near $44.96, according to HypurrScan data.

With HYPE trading around $57.30, the position was down roughly $22.18 million. The trader had earned about $204,522 in funding, but that barely offset the growing losses as HYPE rallied nearly 8% intraday.

HYPE whale’s perpetual positions dashboard. Source: HypurrScan

The short exposure was worth about $95 million earlier on Thursday, suggesting the whale has increased its exposure despite mounting losses. It risks liquidation if the HYPE price rises to around $69.

Strong HYPE accumulation may deepen whale’s losses

HYPE has emerged as one of the best-performing cryptocurrencies so far in 2026, up about 134% compared to the crypto market’s 16% drop.

A huge chunk of those gains surfaced in May as market attention turned to newly launched US spot HYPE ETFs and Coinbase’s role as the official treasury deployer for USDC on Hyperliquid.

Since the May 12 launch, these ETFs have attracted $58.73 million amid a steady increase in daily inflows, according to data resource SoSoValue.

US spot HYPE ETFs net inflows. Source: SoSoValue

A wallet linked to Galaxy Digital bought 158,100 HYPE worth $8.8 million in two hours, while a new wallet withdrew 536,247 HYPE worth $29.87 million from Coinbase over two days, according to data resource Arkham Intelligence.

Together, they accumulated or withdrew around 694,500 HYPE, valued at nearly $38.67 million. Such moves may deepen losses for the already underwater short seller.

Related: Hyperliquid eyes 55% price rise after Silicon Valley investor’s ‘massive HYPE buy’

As of Thursday, Hyperliquid had witnessed $36.33 million in liquidations on a 24-hour rolling basis, according to CoinGlass. Shorts accounted for $34.29 million, or about 94% of the total, while long liquidations were only $2.03 million.

Hyperliquid liquidation data. Source: CoinGlass

That shows HYPE’s rally is heavily driven by forced short covering, increasing squeeze risk for the underwater whale if prices keep rising.

HYPE technicals hint at a 20% correction

HYPE’s rally is showing signs of upside exhaustion as the price tests the upper boundary of its ascending channel.

That resistance zone sits near $59–$60, the same area that marked HYPE’s September 2025 record high before plunging by over 65%.

HYPE/USD daily chart. Source: TradingView

Its daily relative strength index (RSI) has also climbed to around 77, the highest level since May 2025, putting HYPE firmly in overbought territory.

A pullback from this resistance confluence could send HYPE toward the 0.786–0.618 Fibonacci retracement range, near $51.5–$45. This range aligns with the channel’s lower trend line.

In other words, HYPE price risks a decline of up to 20% from current levels if traders start taking profits near the channel top.

The short seller would recover roughly $10.4 million–$22.1 million from current levels, though the trade would only turn profitable below the $44.96 entry price, excluding funding and fees.

XRP ETFs attract inflows amid wallet surge. bitcoin, ether funds struggle.

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XRP held near $1.37 by midday Hong Kong time on Thursday, according to CoinDesk market data, with fresh ETF and on-chain data suggesting some investors may be rotating into XRP. Meanwhile, market leader bitcoin hovered around $77,400 and ether (eTH) remained under pressure.

CoinGlass data shows XRP-linked funds pulled in $8.88 million in the latest session, extending a streak of positive flows that includes $18.52 million on May 14 and $10.87 million on May 15. Across the past week, XRP products have attracted roughly $42 million in net inflows.

This has caught analysts’ attention because money has been leaving the largest listed crypto products. Bitcoin ETFs lost another $100.9 million in the latest daily session, following redemptions of $648.6 million, $331.1 million, and $290.4 million earlier in the same stretch. Ether products also remained under pressure, losing $32.6 million in the latest session.

The data suggests a selective appetite for alternative crypto exposure, though XRP’s broader network growth trend remains weaker than late 2025 levels.

Onchain activity offers a second, though less definitive, signal.

XRP recorded the fourth-largest daily spike in wallet creation this year, with 4,300 new wallets added in 24 hours, according to Blockchain analytics firm Santiment.

Fresh wallet creation can sometimes point to new network participation, particularly when paired with capital inflows.

But the broader Santiment chart suggests caution.

XRP’s network growth has generally trended lower since late 2025, making the latest move look more like a sharp one-day spike than clear evidence of sustained adoption.

For traders, the question is whether XRP is seeing the early stages of a broader rotation trade, or simply a short-lived burst of speculative positioning while the wider crypto market remains under pressure.

Bitcoin volatility hits 7 month low as institutional demand steadies markets

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Financial headlines continue to warn of macro risks, yet bitcoin’s volatility metric seems to think it’s all noise.

The cryptocurrency’s annualized 30-day implied volatility index, BVIV, continues to slide, hitting 38%, its lowest reading since October 2025, according to data source Volmex. When implied volatility falls, it signals that traders expect calmer price action and fewer large moves ahead.

“Bitcoin volatility has collapsed, and you can see it clearly in the BVIV levels, which we track closely to monitor market complacency,” said Shiliang Tang, Managing Partner at Monarq Asset Management.

“First, the geopolitical risk from the Iran conflict is finally moving into the later stages. Second, the continued BTC buying from Strategy (MSTR) and its perpetual preferred STRC complex is dampening downside BTC volatility by acting as a structural floor,” Tang added.

He also blamed systematic “call overwriters” for driving the yield lower. Overwriting involves selling a higher strike out-of-the-money call option to earn an additional yield on top of the spot market holding. BTC is currently trading near $77,300, so anyone holding BTC and selling calls above that price is a call overwriter.

Systematic overwriters, typically institutional funds running yield-enhancement strategies, continuously sell bitcoin options to collect premium income. This steady supply of options suppresses implied volatility and dampens expectations for large price swings.

“Finally, because Bitcoin has underperformed other risk assets to the upside, systematic overwriters are aggressively selling options for yield, keeping a heavy lid on the entire volatility complex,” Tang noted.

Bitcoin is currently trading around $77,000, while oil markets, often used as a proxy for geopolitical risk, remain relatively contained, with WTI crude trading below $100 per barrel.

Meanwhile, Strategy has purchased 171,238 BTC in 2026, significantly outpacing the roughly 63,450 BTC mined during the same period. That imbalance reinforces persistent institutional demand and reduces market supply.

Bitcoin’s declining volatility also reflects its maturation as an institutional asset. As adoption expands across ETFs, asset managers, corporates, and treasury allocators, liquidity deepens, and ownership becomes more diversified, naturally reducing the extreme volatility that characterized bitcoin’s earlier years.

Clarity Act could usher in a new era of crypto ‘yield-as-a-service’

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The Clarity Act’s biggest outcome may be the creation of an entirely new market for “yield-as-a-service,” according to Joe Vollono, chief commercial officer at stablecoin infrastructure firm STBL.

At the center of the debate is Section 404 of the proposed legislation, which would prohibit Digital Asset Service Providers (DASPs) and their affiliates from offering yield solely as a function of holding a digital asset.

The provision could fundamentally reshape how crypto users earn returns, pushing the market away from passive “hold-to-earn” products and toward more active, compliant yield-generation strategies.

“What this effectively does is shift the industry from a hold-to-earn market to a use-to-earn market,” Vollono told CoinDesk in an interview. “You’re going to need compliant yield strategies to generate rewards on what would otherwise be idle capital.”

The Clarity Act has already cleared the Senate Banking Committee and is now expected to move into the full Senate to be merged with the Senate Agriculture Committee version of the bill before House reconciliation, with an optimistic timeline pointing to a full vote as early as July. Regulators would then have roughly 12 months to implement the framework.

Vollono, who spent more than seven years at Morgan Stanley and served at SIFMA, where he worked on industry advocacy and market structure issues, said the implications of the Clarity Act extend far beyond yield products themselves. Regulatory clarity, he argued, could finally unlock large-scale institutional participation in crypto markets.

“Once these issues are resolved, it allows capital at scale to enter the market,” he said. “That’s the real catalyst here.”

Passage of the Clarity Act is widely viewed as a potential inflection point for crypto markets because it would establish the first comprehensive U.S. regulatory framework for digital assets, ending years of uncertainty over whether and how tokens fall under Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC) jurisdiction.

The legislation would create clearer rules for exchanges, brokers, stablecoin issuers and decentralized finance platforms, a move many analysts say is necessary before large institutional investors, banks and asset managers can commit capital at scale. Supporters argue that regulatory clarity could reduce legal risk, improve consumer protections and give traditional financial firms the compliance framework needed to build crypto products and services in the U.S. rather than offshore.

The role of AI

The likely result, Vollono said, is the emergence of a middle layer of infrastructure providers focused on compliant yield generation. He said he expects many of those services to be powered by artificial intelligence acting as an orchestration layer for regulated capital flows.

Among the potential beneficiaries are decentralized finance (DeFi) infrastructure providers, vault curators, collateral management platforms, automated treasury services, lending markets and rewards systems.

“All of this can be automated by AI in a regulated market,” he said.

The underlying technology stack already exists, Vollono said, pointing to smart contracts, oracles, DeFi rails and API-based infrastructure that could be adapted to fit within a regulated framework.

“This creates a whole new world,” he said.

Legislation

The debate around the legislation has also exposed tensions between traditional banks and the crypto industry, particularly over stablecoins and deposit migration.

“There’s a lot at stake,” Vollono said. “Banks are worried about deposit flight, but I think that concern is largely overstated.”

He said that the traditional fractional reserve banking model depends on banks maintaining large capital bases that can be lent out to create credit and liquidity. If deposits migrate into tokenized dollars or yield-bearing blockchain products, that model could come under pressure.

Still, Vollono said he sees the eventual compromise as beneficial for incumbents rather than existentially threatening.

“Smart incumbents are going to compete,” he said. “Banks don’t necessarily have to give up market share.”

He suggested banks could eventually collateralize reserves to issue their own stablecoins and generate compliant yield under the Clarity framework, opening the door to entirely new business models.

Stablecoin 2.0

That dynamic is central to STBL’s own pitch.

The company describes itself as “stablecoin 2.0,” arguing for a shift away from the traditional centralized issuer model that dominates the market today.

Instead, STBL is building infrastructure that allows users to mint real-world-asset-backed stablecoins while retaining the economics generated by the underlying reserves.

“Users that provide value into the ecosystem should participate in the economics,” Vollono said.

The company’s infrastructure is designed to support compliant yield management while allowing users, rather than centralized issuers, to capture the yield generated by reserve assets.

For Vollono, the Clarity Act could provide the regulatory framework needed to accelerate that transition. “I’ll tell you what the Act makes clear: money-as-a-service has arrived,” he added.

Read more: Crypto Clarity bill has 30% chance of passing this year, Wintermute’s Hammond says

Crypto trader sees Hyperliquid, AI tokens leading next altcoin rally

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Latest developments: Hyperliquid is outperforming much of the crypto market as traders rotate back into higher-risk assets.

  • Hyperliquid’s HYPE token hit a new all-time high after two HYPE ETFs launched in the U.S.
  • Van de Poppe said European traders have increasingly moved to Hyperliquid because perpetual futures trading remains difficult to access on many regulated venues in Europe.
  • He argued Hyperliquid’s push into tokenized stocks, commodities and pre-IPO assets is accelerating broader tokenization trends across crypto markets.
  • Van de Poppe said HYPE could rise to $100 or more if crypto market appetite continues to strengthen.
  • Van de Poppe joined Jennifer Sanasie on CoinDesk’s Markets Outlook.

What this means: Van de Poppe sees Hyperliquid as a short-term winner but Solana as the stronger long-term conviction bet.

  • He said liquidity in crypto markets is concentrating around a small group of protocols generating strong user growth and revenue.
  • Van de Poppe said Hyperliquid currently benefits from that concentration but warned competitors will eventually enter the market and pressure its dominance.
  • He described Solana as successfully transitioning from a “degen” ecosystem into a more institutional blockchain ecosystem.
  • Van de Poppe said Solana’s long-term positioning as infrastructure makes it more attractive than Hyperliquid over a multi-year horizon.

The AI trade: AI-linked crypto projects remain deeply undervalued relative to traditional AI companies, van de Poppe said.

  • He pointed to NEAR and Bittensor as two of the strongest infrastructure plays tied to AI adoption in crypto.
  • Van de Poppe argued valuations for private and public AI companies have become overheated, while crypto AI tokens have fallen sharply despite continued ecosystem growth.
  • He said NEAR’s projected revenue growth from roughly $10 million in 2025 to as much as $100 million this year supports a significantly higher valuation.
  • Van de Poppe said Bittensor’s ecosystem expansion and subnet structure could justify prices between $1,000 and $2,000 if adoption continues.

The privacy debate: Privacy remains one of crypto’s biggest long-term themes, but fully anonymous systems face major regulatory risks.

  • Van de Poppe said institutional and retail users both want more transactional privacy on blockchains.
  • He argued governments are unlikely to support fully anonymous privacy coins over the long term because regulators want visibility into transactions.
  • Van de Poppe said funds in Europe already face restrictions interacting with certain privacy-focused assets.
  • He pointed to zero-knowledge proof systems and permissioned privacy models as more sustainable paths forward for institutional adoption.

Macro outlook: Van de Poppe said bond yields and central bank policy remain the biggest near-term macro drivers for crypto.

  • He said Japanese bond yields are a key market signal and could heavily influence broader risk appetite.
  • Falling yields could support equities and crypto markets, while persistent inflation could create headwinds.
  • Van de Poppe said he does not expect aggressive rate cuts or renewed monetary easing from the Federal Reserve in the near term.
  • He warned additional rate hikes would likely pressure crypto and broader risk assets.

New Federal Reserve Chair Sworn In, but Rate Cut Odds Remain at 0

Kevin Warsh was sworn in on Friday as the chairman of the United States Federal Reserve, but investors and traders still forecast no interest rate cuts for the rest of 2026.

Speaking at the ceremony, US President Donald Trump said that Warsh will remain “independent” of the Executive Branch regarding interest rate policy, and claimed that employment numbers are at record levels. 

“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, that’s a good thing,” Trump said. He added:

“We do have some debt we would like to take care of, and the way you do that is through growth. We are going to grow our way out of it so fast.” 

Warsh, pictured on the left, is sworn into office by Supreme Court Justice Clarence Thomas. Source: The White House

“We want to stop inflation, but we don’t want to stop greatness,” Trump continued, drawing mixed reactions from investors and economists, who weighed the likelihood of the Federal Reserve continuing to expand the monetary supply through low interest rates.

Lower interest rates are stimulative for risk-on assets like Bitcoin and crypto; however, cheap access to credit can also cause inflationary spikes, as individuals and institutions are encouraged to borrow cheaply and spend money on investments and commercial goods.

Related: Senate confirms Kevin Warsh to lead Federal Reserve

Investors forecast a 0% likelihood of interest rate cuts in 2026

Investors forecast no chance of an interest rate cut in 2026, and potential rate hikes at the remaining Federal Open Market Committee (FOMC) meetings, according to the Chicago Mercantile Exchange’s (CME) FedWatch tool.

3.5% of investors forecast a 25 basis point (BPS) interest rate hike at the next FOMC meeting, scheduled for June 17, according to CME data. For context, the current Federal Funds Target rate is between 350 and 375 BPS. 

Interest rate target probabilities for the June FOMC meeting. Source: CME Group

The probability of a 25 BPS rate hike at the July FOMC meeting surged to 17%, and about 67% of investors forecast a rate hike at the FOMC’s final meeting in December.

The lack of interest rate cuts and macroeconomic uncertainty regarding the change at the Federal Reserve could negatively impact risk assets like Bitcoin, crypto and equities over the next several months.

Magazine: Will the CLARITY Act be good — or bad — for DeFi?

XRP Ledger Activity Surges, But What Is Stopping Price Breakout?

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XRP Ledger has seen a spike in new addresses over the last 24 hours, but overhead resistance at $1.40 kept the XRP (XRP) price in check.

Key takeaways:

  • XRP Ledger added 4,300 new wallets in 24 hours, marking the fourth-largest growth spike on the network in 2026.
  • XRP price recovery may face resistance at $1.40, with a prolonged consolidation likely.

XRP Ledger sees fourth-largest growth spike in 2026

The XRP Ledger recorded one of its strongest growth surges of the year after adding 4,300 new wallets within 24 hours, the “fourth largest spike of 2026,” according to Santiment.

Related: XRP price may explode to $15 amid ‘quiet accumulation,’ analyst claims

The chart below shows that newly created XRP wallets increased to 4,300 on May 20, from about 2,500 on May 19. Similarly, daily active addresses increased to 43,520 from 32,000 over the same period.

“XRP is seeing one of its largest network growth stretches of the year,” the market intelligence firm said in a Thursday post on X, adding: 

“Network growth is among the top leading signals to identify reversals.”

XRP Ledger active addresses and network growth. Source: Santiment

“When wallets rise like this, smart money pays attention,” analyst Amonyx commented, adding:

“$XRP reversal signal?”

Fellow analyst Niroshan682 said new wallet creation is often an “early signal of new network participation,” especially when it happens alongside growing institutional adoption and rising ETF inflows.

US-based spot XRP ETFs held about 1.34% of the XRP total supply after this month’s inflows. About $107.3 million worth of XRP ETFs flowed in May so far, with the $8.8 million in net inflows on Thursday marking the 12th straight day of positive flows.

This streak has pushed cumulative inflows to nearly $1.4 billion and assets under management (AUM) to $1.15 billion.

Spot XRP ETF flows chart. Source: SoSoValue

Despite these positive fundamentals, XRP/USD is down 1.5% over the last 24 hours, and remains 62% below its $3.66 multi-year high reached in July 2025. 

XRP faces stiff overhead resistance

XRP’s latest 21% rally from the local low at $1.27 reached on April 5 stalled at $1.55, coinciding with the upper limit of a range that has capped its price action since early February. 

Bulls must push the price above the $1.40-$1.55 resistance zone to confirm a breakout from consolidation. This area is also defined by the 50-day simple moving average (SMA), the 100-day SMA and the 100-day exponential moving average, as shown in the chart below.

XRP/USD daily chart. Source: Cointelegraph/TradingView

According to XRP’s cost-basis distribution data, investors hold approximately 3.75 billion XRP at an average cost of $1.37-$1.45, creating a potential resistance zone. 

This concentration suggests many investors may sell at break-even, potentially stalling XRP’s upward momentum.

XRP cost basis distribution chart. Source: Glassnode

Another supply congestion zone is higher up at $1.68-$1.70, where investors bought approximately 3.8 billion XRP. This level coincides with the upper boundary of a falling wedge pattern, which is setting up the XRP/USD pair for a breakout, according to analyst Crypto Michael. 

Note that a weekly close above the wedge’s upper trend line could open the way for a rally toward the measured target at $3.52, about 50% above the current price. 

XRP/USD weekly chart. Source: Crypto Michael. 

As Cointelegraph reported, buyers will have to push XRP/USD above the multi-month trend line at $1.40 to signal a comeback, while a close above $1.61 would confirm a potential trend change. 

Altcoin rotation heats up as bitcoin flatlines for fourth straight day

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Crypto majors bitcoin and ether (ETH) head into the weekend having been confined to a tight trading range over the past four days, with BTC being trapped between $76,100 and $78,000.

The lack of volatility has led to little pockets of the altcoin market benefitting from the speculative nature of crypto investors. The AI sector was the recipient of such speculation on Friday as NEAR increased by 28.5% while FET posted an 11.4% gain in the past 24 hours.

Conversely, privacy coins DASH, ZEC and XMR experienced a wave of sell pressure on Friday, eroding much of their early week rally, indicating that sector rotation is in full effect.

Brent crude oil dropped to $102 per barrel on Friday, down from $112 seen earlier this week as speculation swirls around a potential peace deal between Iran and the U.S.

U.S. equities responded well to the drop off in oil; Dow Jones Industrial Average closed at a record high on Friday, while Nasdaq 100 and S&P 500 are now up by 3% and 1.7% respectively since Tuesday’s low, suggesting a return to risk-on sentiment.

Derivatives positioning

  • Crypto futures market-wide volume rose modestly by 1% to $160 billion in the last 24 hours, while notional open interest (OI) remained stable near $128 billion. Liquidations declined sharply by 26% to $200 million. This setup reflects a calmer market with reduced forced liquidations, even as volume growth remains relatively muted.
  • Today’s standout token is Near Protocol’s NEAR, which has gained over 25%. With the price rise, OI in futures tied to the token has surged to a record high of 282.53 million tokens. The OI-adjusted 24-hour cumulative volume delta is positive, a sign of aggressive buying at market orders rather than passive limit orders. This validates the upswing in prices. And last but not least, funding rates remain mildly positive, suggesting healthy leverage conditions and no overheating.
  • Markets tied to TRX and LINK display a similar bullish profile, characterized by OI growth, positive CVDs and positive funding rates.
  • The bitcoin market offers little excitement, with OI steady in the recent 720K BTC to 750K BTC range. The same can be said for ether.
  • Both BTC and ETH’s annualized 30-day implied volatility indices continue to slide. That’s a sign of relentless volatility selling via options, mostly call overwriting.
  • On Deribit, bitcoin puts at strikes ranging from $71,000 to $77,000 dominate the 24-hour volume rankings. Similar volume concentration is seen in ether puts. A put option offers protection against price losses in the underlying asset.

Token talk

  • CoinDesk’s DeFi Select Index (DFX) was up by 1.1% on Friday, outperforming the CoinDesk Smart Contract Platform Select Capped Index (SCPXC), up by just 0.3%, and the CoinDesk Memecoin Select Index (CDMEME) after it tumbled by 1%.
  • The altcoin market was generally a mixed bag on Friday; XRP, SOL and ETH all lost ground alongside the privacy coin sector while the likes of HYPE and ATOM continue to show relative strength, with the later posting a 5% gain since midnight UTC.
  • HYPE, the native token of perpetual exchange HyperLiquid, has been its own animal this week – rising to a barnstorming record high after surging by around 60% since Tuesday.
  • The move comes alongside heavy short interest and a wave of liquidations coupled with institutional participation following the launch of spot ETFs in the U.S. this month.
  • CoinMarketCap’s “altcoin season” indicator rose from 31/100 to 38/100 this week, buoyed by HYPE’s strong performance.