Bitcoin and Ethereum Rally Over 2% as Derivatives Traders Pile Back In

Bitcoin (BTC) and Ethereum (ETH) are rallying over 2% alongside XRP, as derivatives traders pile back into bullish positions ahead of the US jobs report. This surge in price is being fueled by fresh positions, with open interest rising to roughly 653,000 BTC, worth $56.2 billion, up from 626,000 BTC on September 30.

The perpetual funding rate has jumped from about 3% to 10% over the same stretch, meaning traders holding long positions are now paying significantly more to stay long heading into Friday's jobs data. This increased cost for holding bullish bets raises the risk of a price reversal if the market suddenly changes direction.

Crypto-linked stocks have also moved higher alongside the rally, with Strategy MSTR and Strive ASST each gaining around 3% in premarket trading, while Coinbase COIN and Robinhood HOOD rose roughly 2%. Long-term chart targets suggest that Bitcoin could reach $190,000 if it breaks above its prior high near $125,000, while Ethereum has a potential target of $8,800 if it clears resistance near $5,000.