Bitcoin climbed above $66,500 following the Bank of Japan’s interest rate increase to a 31-year high, gaining 1.5% over 24 hours as derivatives data signaled renewed risk appetite across crypto markets.
The move came after Bitcoin recovered from a June 5 low below $60,000. Asian trading had held BTC at $65,600 before the rally lifted the token higher. Altcoins followed: Stellar (XLM), Injective (INJ), and Uniswap (UNI) each gained 13% to 16% in the same period.
Derivatives exchanges reflected the shift in sentiment. Total 24-hour crypto trading volume jumped 51% to $207 billion. Open interest rose 2.4% to $113.41 billion. Short liquidations surged 64% to $561 million. Bitcoin futures open interest reached 747,000 BTC, marking the third consecutive daily increase. Ether futures open interest rose from 13.64 million ETH to 14.20 million ETH.
Litecoin (LTC) open interest climbed 6.6% to 6.86 million tokens, though still below the January 2026 peak of 9.29 million. Funding rates and implied volatility indexes (BVIV for Bitcoin, EVIV for Ether) nearly fully reversed a spike from the first week of June, suggesting a market less gripped by fear.
Other major assets showed mixed positioning. TON, BCH, and HBAR saw open interest decline. Real-world asset (RWA) perpetual futures volume rose 10.4%, indicating institutional interest beyond pure crypto plays.
Derivatives positioning reflected caution alongside optimism. On Deribit, the largest options exchange by volume, Bitcoin put options at $58,000 to $64,000 strikes drew the most activity. Put condors, a non-directional volatility strategy, appeared in block trades, suggesting hedging demand remained present.
Avalanche Sentiment Darkens
While broader markets rallied, Avalanche (AVAX) sentiment deteriorated. The positive-to-negative commentary ratio fell to 0.85, indicating more negative chatter than positive. AVAX traded around $6.88, near the low end of its recent range and well below the $10 level it held one month prior in January 2026.
Negative commentary centered on developer activity and user growth shifting toward competing chains Solana and Sui. Santiment, the blockchain data tracker, noted that extreme negative sentiment has historically marked opportunities rather than market tops. Avalanche retained institutional partnerships, government-linked projects, and its subnet design architecture.
Standard Chartered initiated coverage of Uniswap with a $100 price target by 2030, signaling institutional confidence in decentralized exchange protocols despite near-term volatility.
Memecoin Capitulation
SIREN memecoin collapsed 77% month-to-date. Blockchain data trackers attributed the decline to a single whale offloading 92% of the token supply. The token fell 21% in the preceding 24 hours alone.
The broader crypto market had faced headwinds in May 2026. Combined exchange volumes fell 3.45% to $4.41 trillion, signaling reduced retail participation. The June recovery suggested institutional and leveraged traders were re-entering positions ahead of or in response to the Bank of Japan’s policy shift.
