Crypto Markets Rally as Derivatives Traders Pile Back into Bullish Positions

Crypto markets are rallying as derivatives traders pile back into bullish positions ahead of the U.S. jobs report. Bitcoin (BTC), Ethereum (ETH), and XRP are all climbing together, with BTC up 1.5% and holding above all EMAs, while ETH and XRP are also gaining 1.5% and 3%, respectively.

The rise in bullish positions is evident in the increasing open interest, which has risen to 653,000 BTC, worth $56.2 billion, up from 626,000 BTC on September 30, a gain of about 4.3%. The perpetual funding rate has also jumped from roughly 3% to 10% over the same stretch, meaning traders holding long positions are now paying significantly more to stay long.

This pickup in open interest starts from a low base, as it sat near its lowest level in 12 months at the end of September. While the rising funding rate signals stronger bullish demand, it also raises the cost of holding long positions and leaves leveraged traders more exposed if price reverses suddenly.

Crypto-linked stocks are also moving higher, with Strategy MSTR and Strive ASST each gaining around 3% in premarket trading, while Coinbase COIN and Robinhood HOOD rose roughly 2%.

Analyst Ali Martinez has posted potential cycle targets for each asset if they clear key resistance levels on their monthly charts, including a break above $125,000 for BTC, $5,000 for ETH, and $31.87 for XRP.