Bitcoin surpasses stocks, exceeds $72,000 despite rising dollar value.

BTC increased by 2% to surpass $72,000 as U.S. equity futures declined and the dollar gained strength, with altcoins and AI tokens contributing to a wider crypto surge.

Bitcoin targets a bullish breakout (Sternschnuppenreiter/Pixabay/Modified by CoinDesk)

Key points:

• BTC increased by 2% since midnight UTC, surpassing $72,000 and outpacing Nasdaq 100 and S&P 500 futures, even as the dollar index (DXY) rose above 100.
• A significant volume breakout above $74,000 could lead to a move towards $80,000, while a rejection would likely keep BTC within the range observed since February 5.
• TRUMP surged over 30% following a gala announcement for top holders, while AI tokens TAO and FET each saw gains of around 14% amid overall market strength.

Bitcoin BTC$71,859.13 moved past $72,000 during European trading hours on Friday, having climbed by 2% since midnight UTC and outperforming U.S. equity indexes.

Futures for the Nasdaq 100 and S&P 500 index fell during Asian trading hours before rebounding. Both are currently showing positive returns. The U.S. Dollar Index (DXY) has also risen above 100, a development that typically exerts pressure on risk assets such as cryptocurrencies and stocks.

Nonetheless, the cryptocurrency market appears to be relatively shielded from this pressure today, exhibiting notable gains across various assets. The CoinDesk 20 Index (CD20) is up by 1.1% since midnight.

If Bitcoin can break through the $74,000 mark, a level it has struggled to surpass recently, with convincing volume, it may initiate a rally back toward the $80,000 area. Conversely, it is likely to revert to a trading range established since February 5.

The conflict in Iran persisted on Friday morning, with new strikes reported in Tehran and Dubai, keeping oil prices around $100 per barrel.

Derivatives positioning

• Total industry-wide futures open interest (OI) rose 5% to $107.6 billion in the past 24 hours, indicating sustained capital inflows as Bitcoin and other tokens remain steady amid global equity market turmoil.
• Bitcoin’s OI climbed to 687,200 BTC, the highest since February 25. Ether’s (ETH) OI increased to 13.72 million, the most since January 30. Annualized perpetual funding rates and cumulative volume deltas for both remain positive, suggesting a bullish sentiment among investors.
• In XRP, OI surged nearly 10% to $1.86 billion, marking the highest level since February 6. This, along with positive funding rates, indicates renewed capital allocation for bullish positions. Open interest in SOL, ADA, and SUI futures also saw significant increases.
• Bitcoin’s annualized 30-day implied volatility index (BVIV) decreased to a two-week low of 55%, reinforcing the case for ongoing price rallies. Ether’s volatility is also on the decline. This stability stands in contrast to the heightened volatility observed in the U.S. Treasury market.
• On Deribit, Bitcoin puts are still more expensive than calls, reflecting sustained demand for downside protection. For ETH, the put premium at the longer end has nearly vanished, suggesting a bullish adjustment.
• Block flows revealed demand for Bitcoin put spreads and Ether call spreads.

Token talk

• The altcoin market displayed resilience on Friday. The U.S. president-themed memecoin TRUMP jumped by over 30% in 24 hours following the announcement of a "gala luncheon" with Donald Trump for the top 297 token holders.
• Artificial intelligence (AI) tokens bittensor (TAO) and artificial super intelligence alliance (FET) both rose by 14% as investors continue to anticipate a broader market breakout.
• CoinMarketCap’s "Altcoin Season" index has reached 40/100, its highest level since January 9.
• CoinDesk’s Computing Select Index (CPUS) is the top performer over the last 24 hours, having risen by 6.5%. It is followed by the CoinDesk Memecoin Index (CDMEME) and the DeFi Select Index (DFX), which increased by 4% and 3.7%, respectively.
• A laggard over the past 24 hours has been canton (CC). The token associated with the institutional-focused layer-1 network has declined by 4%, bringing its monthly loss to 11%.