Key Insights
- The crypto market rally is underway, with Bitcoin moving above $90,000.
- This rally is happening as futures open interest rebounds.
- It has also coincided with the rising stock market and falling US bond yields.
The recent crypto market rally, which started on Monday, continued today, on Nov. 27. Investors have bought the dip amid numerous bullish catalysts.
Bitcoin price has jumped above the key resistance level at $91,000, while the market capitalization of all the cryptos has risen to $3.12 trillion. So, let’s find out why Bitcoin and other altcoins are going up today.
Crypto Market Rally Boosted by Rising Open Interest
The ongoing crypto market rally is underway, as third-party data reveals that traders are starting to deploy leverage, which is a bullish sign.
Data compiled by CoinGlass shows that the futures open interest has continued to rise over the past few days. Bitcoin’s open interest bottomed at $58 billion on November 22 and has since steadily risen to $61 billion as of today.
The 24-hour open interest rose by 3.55% to $133 billion. It is higher than this month’s low of below $125 billion.
Open interest is an important data that assesses the amount of open positions in the futures market. A higher number is usually a sign of increasing leverage, which often boosts cryptocurrency prices.
One main reason why the crypto market crashed recently is that the industry suffered a $20 billion liquidation on October 10. That led to increased fear and panic among investors.
The Crypto Fear and Greed Index is Rising
Bitcoin and other altcoins are rising today as a closely watched gauge began to rise. As the chart below shows, the Crypto Fear and Greed Index fell to the year-to-date low of 8 during the weekend, as most tokens dropped.
It has now started moving upwards and currently stands at the fear zone of 18. In most cases, crypto bull runs normally start when the index moves to the extreme fear zone and then drops when it enters the extreme greed zone. Therefore, the crypto market is rising as fear among investors eases.
Stock Market Rally and Risk-On Sentiment
The crypto market rally is happening as global investors embrace a risk-on sentiment. It is evidenced by the performance of global stocks.
American stocks rebounded on Wednesday, with the Dow Jones, S&P 500, and Nasdaq 100 rising by over 1%. Other global indices, such as the German DAX, French CAC 40, and Hong Kong’s Hang Seng, rose by over 0.50%.
Boosting the sentiment is the fact that major Wall Street investors are upgrading their estimates for American stocks. In a note on Wednesday, analysts at JPMorgan Private Bank forecast that the S&P 500 Index will jump by 20% to $8,200 by 2027.
Other analysts from companies like Deutsche Bank and Morgan Stanley have also upgraded their S&P 500 Index forecast for next year to $7,500. The rising optimism among investors is having a ripple effect in the crypto market industry.
Falling US Bond Yields are Boosting Crypto Prices
Meanwhile, the crypto market rally is happening as the bond market in the US improves. It suggests that market participants anticipate the Federal Reserve could cut interest rates at its upcoming meeting.
Data compiled by TradingView shows that the 10-year government bond yield has decreased over the past five consecutive days to its current level of 4%. It has fallen to the lowest level since October 29. Similarly, the five-year yield dropped to 3.567% from this month’s high of 3 76%.
These bond yields have dropped as the odds of the Federal Reserve cutting interest rates in December have risen.
According to Polymarket, these odds have risen to 83% from below 50% last week. Cryptocurrencies and other risky assets do well when the Fed is cutting interest rates.
The crypto market is rebounding, with Bitcoin trading cautiously above the important resistance level at $90,000.
This rally is being driven by numerous catalysts, including the soaring stock market and the rebounding Fear and Greed Index. However, there is still a risk that the ongoing crypto rally is a dead-cat bounce
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
