Emre Yumlu 
Bitcoin (BTC) and Ethereum (ETH) saw significant gains on Tuesday, while futures markets also witnessed notable activity. The rise in open interest suggests that investors are showing renewed appetite for risk.
Political Easing Triggers Market Optimism
Statements from U.S. Treasury Secretary Scott Bessent regarding easing U.S.-China trade tensions, followed by former President Donald Trump’s remarks about substantially lowering tariffs on Chinese goods, were welcomed by markets. Trump also mentioned he has no plans to replace Federal Reserve Chair Jerome Powell.
Following these developments, Bitcoin surged by 6.79%, reaching close to $94,000—its strongest one-day performance since April 9. Ethereum climbed 11% to $1,175, marking its best day since April 2.
Open Interest Growth Reflects Investor Optimism
Platforms such as Binance, Bybit, OKX, Deribit, and Hyperliquid saw significant increases in open interest for perpetual futures contracts, signaling increased market engagement.
BTC perpetual futures open interest rose 10% to $17.83 billion, the largest single-day jump since early March. At that time, Trump had floated the idea of a strategic digital asset reserve that would include Bitcoin and Ethereum.
Joao Wedson, CEO of Alphractal Research, shared on X, “Bitcoin’s open interest grew faster than its price, with most positions originating from Binance. A large portion consists of long positions, so we might see heightened volatility in the short term.”
Short Squeeze and Funding Rates in Focus
The rally may have been supported by a short squeeze, as funding rates were negative 24 hours earlier—indicating a bearish tilt in the market. In such cases, rapid short position liquidations can accelerate price increases.
Ethereum mirrored Bitcoin’s momentum, with its perpetual open interest jumping nearly 16% to $6.60 billion, the biggest daily gain since November 27.
Positive Funding Rates Support the Rally
Funding rates for BTC and ETH are currently positive, ranging between an annualized 5% to 10%, indicating that long positions dominate.
These rates, paid every eight hours, are used to keep perpetual contract prices aligned with spot prices. A positive funding rate reflects that traders are willing to pay to hold long positions—often seen as a bullish sign.
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