The cryptocurrency market closed the week with renewed bullish momentum after softer U.S. employment data reduced expectations of another Federal Reserve interest-rate hike, improving investor sentiment across digital assets.
Bitcoin recovered significantly from its recent lows, climbing more than 6% during the week to trade around $61,600. The recovery followed a sharp rebound after the release of weaker U.S. labor market data, which increased expectations that the Federal Reserve may pause further monetary tightening.
Ethereum also extended its rally for a third consecutive day, gaining more than 11% since the beginning of the week. Several leading altcoins, including Cardano, Zcash, and Dash, recorded steady gains as buying activity strengthened across the broader crypto market.
Market Sentiment Turns More Bullish
Although the overall crypto market remains in a broader downtrend, analysts believe recent price action reflects improving investor confidence.
Bitcoin continues to face major resistance levels before confirming a long-term trend reversal. A sustained move above key price zones would be needed to signal a stronger bullish market structure.
Meanwhile, declining market volatility suggests traders are becoming increasingly optimistic about near-term price stability and potential upside.
Bullish Derivatives Activity Increases
Crypto derivatives markets also reflected growing bullish sentiment.
Ethereum overtook Bitcoin as the largest contributor to futures liquidations over the past 24 hours, indicating that many bearish positions were forced to close as prices climbed. Open interest in Ethereum futures remained near monthly highs, signaling continued demand from traders seeking long positions.
Dogecoin futures also experienced rising open interest, pointing to renewed speculative interest and increased leveraged trading activity.
By contrast, futures tied to tokens such as Hedera (HBAR) and Zcash showed weaker sentiment, with traders increasing short positions.
Options markets further supported the bullish outlook. Most actively traded Bitcoin options were concentrated around higher strike prices between $60,000 and $70,000, reflecting expectations of continued upward movement. Ethereum options displayed a similar trend, with call options attracting the highest trading activity.
Uniswap Leads Altcoin Rally
Among major altcoins, Uniswap (UNI) delivered one of the strongest performances after announcing its partnership with Robinhood's Layer-2 blockchain, where it will serve as the primary automated market maker (AMM).
The announcement pushed UNI higher by more than 11%, while daily trading volume nearly doubled as investors responded positively to the collaboration.
AI-focused cryptocurrencies, including Fetch.ai (FET), Render (RENDER), and Bittensor (TAO), also posted modest gains after weeks of sustained selling pressure, suggesting renewed interest in AI-related blockchain projects.
Solana Emerges as Top Performer
Solana continued to outperform most major cryptocurrencies, rising more than 17% over the past week after rebounding sharply from recent lows.
Despite the improving momentum, the broader altcoin market remains in a neutral phase. Market indicators suggest investors are still waiting for stronger risk appetite before confirming the start of a full-scale altcoin season.
Overall, easing macroeconomic concerns, improving derivatives sentiment, and renewed institutional optimism have helped strengthen crypto markets, positioning digital assets for a potentially more constructive trading environment in the weeks ahead.
Source: CoinDesk