Principal Crypto Assets Extend Substantial Rallies Amid Institutional Developments
Markets Extend Recent Rally
Over the past 48 hours, cryptocurrency markets gained momentum. Bitcoin led the advance, breaking above the $100,000 mark for the first time since early February.
BTC Continues Uptrend
Bitcoin is currently in an uptrend, having consolidated above the crucial $91,000 breakdown threshold established earlier. Since April 24th’s commentary suggesting “the trend looks primed to resume”, the market held near $93,000 briefly before continuing its steady increment towards current levels.
Ethereum Sees Strong Performance
Ethereum’s ascent has attracted attention, with its spot price rising approximately 30% since Wednesday amid significantly increased trading volumes. Some analysts link this rally to last month’s Pectra upgrade, viewed as introducing long-awaited improvements boosting efficiency and scalability. BOB co-founder Dom Harz noted, “It introduces long-awaited improvements that will boost Ethereum’s efficiency and scalability.”
Institutional Story Unfolds: Coinbase Acquires Deribit
A pivotal institutional development involves Coinbase acquiring Deribit, a major off-chain venue for cryptocurrency options. This acquisition is seen as significant for global derivatives trading, a growth driver for Coinbase, according to Fractal Bitcoin analyst Spencer Yang (former Coinbase Wallet product head). He stated, “Global derivatives trading is a key driver of growth for Coinbase. A cash [and] stock deal is a great bargain for Coinbase shareholders since it helps them expand globally.”
Derivatives Show Sharp Increase
Derivatives activity appears to be integral to the recent price action, according to Wintermute analyst Jake O, who reported it was driven by heavy call spread activity and optimism around trade developments. Traders are chasing elevated volatility (“frontend volatility”) with a positive spot-vol correlation predicted through mid-May. However, implied volatility weakens past June, suggesting the rally may moderate for longer-term bets. This aligns with Nick Forster of Derive.xyz, whose analysis indicates “overwhelmingly bullish” trader sentiment, where 59% of ETH options and 67.3% of BTC options are calls.
Broader Market Shows Signs of Life
The broader crypto market landscape demonstrates strength. ETH’s rally coincides with a 25% increase in the ETH/BTC ratio, suggesting relative underperformance previously. Beyond top coins, there are signs of capital returning to the “long tail” of crypto assets, with TradingView’s OTHERS index climbing 16% and stablecoin dominance declining, possibly due to risk appetite returning. Furthermore, optimism about an announced US-UK framework agreement (described as largely symbolic but possibly helpful for “optics”) is being cited by some analysts like Charles Wayn of Galxe as positive, though economist Justin Wolfers downplayed the deal’s “macroeconomic significance”.
