Altcoins Outpace Bitcoin as VIRTUAL Gains Over 20%
Bitcoin (BTC) initiated a market recovery on February 25, rising by as much as 3.7% to trade near $65,600 before settling with a 2.4% gain. While the leading cryptocurrency remained within its three-week trading range, the move triggered a more aggressive rally across the altcoin market. Layer-1 tokens Solana (SOL) and Cardano (ADA) each advanced 4.5%.
The gains were even more substantial in smaller-cap tokens. AI-focused token VIRTUAL was the day's top performer, climbing 15.5% since midnight UTC and more than 20% over the past 24 hours. Restaking token ETHFI and lending platform Morpho's native token (MORPHO) also posted double-digit gains of over 10% and 15% respectively. This widespread outperformance pushed the "altcoin season" indicator to its highest reading since early January, suggesting a renewed appetite for risk among traders.
Futures Interest Climbs to $93.5B as Volatility Eases
The derivatives market showed signs of renewed activity, with cumulative crypto futures open interest (OI) increasing by 1.5% to $93.5 billion. However, a portion of this growth is attributed to spot price appreciation rather than new capital inflows. Investor sentiment appears to be calming, as Bitcoin's 30-day annualized implied volatility index (BVIV) dropped to 56% after spiking to 65% earlier in the week.
Despite the upward price action and easing volatility, some participants are maintaining defensive positions. On Deribit-listed options, the most popular contract is the $60,000 put, a bearish bet that reflects persistent concerns about potential downside. This suggests that while speculative buying has returned, traders continue to hedge against a possible price reversal.
