Bitcoin Price Stabilizes at $78,000 as Rally Enters Second Week

Bitcoin's price has stabilized around $78,000 after experiencing its strongest weekly performance since March 2023, with a gain of approximately 24% in just one week.

The rally is being driven by spot buying, as futures open interest has decreased to a two-month low, falling from 762,000 BTC on August 18 to 715,000 BTC.

This suggests that the move was more supported by closing short positions rather than new leveraged bets. Annualized funding rates for major assets have remained around 10%, indicating no overheating in bullish bets.

However, volatility has increased, with BVIV, which measures Bitcoin's 30-day implied volatility, rising from 36% to 47%. This jump increases expectations for sharp fluctuations.