Altcoins Gain as Bitcoin and Ether Retreat from Weekly Highs

On May 7, 2026, altcoins outperformed both Bitcoin and Ethereum as traders moved towards riskier assets. Bitcoin held around $82,800, while Ethereum fell below $2,400 during European trading hours. In contrast, several altcoins, including Algorand (ALGO) and Toncoin (TON), saw increases of 8% to 9%, with CoinMarketCap's altcoin season index rising to 45/100, marking its highest level since late March.

Market activity showed signs of early bullish reversal after a two-month consolidation phase, although Bitcoin still needs to surpass $98,000 to confirm a trend change from lower highs and lows. Total futures volume in the crypto market increased by just 3% to $216 billion, indicating a conservative approach among traders, with total open interest declining by 3% to $133 billion.

Dogecoin (DOGE) displayed the largest open interest drop at 6%, while XRP followed with a slight decline. Overall, this suggests reduced speculative appetite and capital outflows in the near term, particularly for DOGE. Funding rates remain negative for DOGE, indicating that short positions are compensating long positions to maintain exposure.

In contrast, Ethereum and Solana (SOL) both recorded slight increases in open interest despite falling prices, indicating potential new short positions. The continued performance of Toncoin, with open interest rising over 10% to a record high and its price reaching $2.90, signals strong market interest in that asset.

The options market shows bullish sentiment on Deribit, particularly for call options at strike prices above $80,000, as dealers anticipate potential upward price movement for Bitcoin. Additionally, the one-month volatility risk premium has become positive, reflecting renewed interest in near-term volatility exposure.