Bitcoin and other cryptocurrencies were rallying on Monday as optimism swept through the digital asset space and stock market alike.
The price of Bitcoin BTCUSD +6.21% rose 5% over the past 24 hours to $22,300—the highest levels since a selloff in mid-June drove the largest crypto down from $30,000 to as low as $18,000.
“Bitcoin is back above the $20,000 level as Wall Street becomes a little bit more upbeat on risky assets,” said Edward Moya, an analyst at broker Oanda.
Other digital assets were buoyant as well. EtherETHUSD +10.41% , the second-largest token, gained 9% to nearly $1,500, similarly hitting the highest levels in more than a month. It was more of the same among altcoins, or smaller cryptos, with Solana and Cardano ADAUSD +10.64% each jumping 6%. Memecoins—initially intended as internet jokes—were less strong, though Dogecoin DOGEUSD +5.14% and Shiba InuSHIBUSD +4.91% each rising 3%.
Action in the crypto derivatives market suggests that traders have turned firmly bullish on Bitcoin.
The aggregated open interest of Bitcoin futures—which represents the total value locked up into current contracts betting on Bitcoin’s future price—is at one of the highest levels since mid-June. This is a strong signal that traders are jockeying for position as another big move is expected.
In addition, the funding rate for Bitcoin futures is firmly positive for the first time since the beginning of the month, indicating that the most popular bet among traders is that the largest crypto will rise.