Major Cryptocurrencies Experience Moderate Rally as Market Participation Remains Limited

The cryptocurrency market has seen significant gains, with major assets like bitcoin and ether rising alongside US equities as oil prices decrease. However, broader market engagement remains low, with only a select few coins participating. Bitcoin and ether have experienced a 5% and 9% increase, respectively, over the past 24 hours, driven by strong demand from digital asset treasury firms and traders seeking bullish exposure. Perpetual funding rates are positive but below 10% for both assets, indicating a healthy demand for bullish bets without signs of overheating. Other coins like Solana's SOL and XRP have shown similar patterns, with analysts remaining bullish but seeking a foothold above $74,000-$75,000 for BTC. A victory for the bulls could pave the way for a range of $87K-$90K, but bitcoin may require a period of consolidation before rising above $90K. Select altcoins and memecoins continue to rally, with some decentralized platforms gaining share in the perpetual futures market. However, the broader market has yet to fully participate in the bitcoin rally, with only 51 of the top 100 coins showing a similar price behavior to BTC. The decline of the dollar index supports the bullish case in risk assets, and traditional metrics measuring market breadth based on price performance filters indicate a limited market participation.