Welcome to The Market Runup! Every week, we dive into what happened in the crypto market onchain and off-chain, as well as macro developments — so you can get smarter on your Mondays and prepare for the week ahead.

Last week, I sat down with Jay File, CEO of Lite Strategy, to discuss why digital asset treasury companies are evolving beyond simply holding crypto; why payments infrastructure may become one of the biggest investment themes of the decade; and what the next phase of institutional adoption looks like.

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Episode 25: Jay File on Litecoin, Digital Asset Treasury 3.0 & Institutional Adoption

Last week, Jay File, CEO of Lite Strategy, spoke on the podcast about what the next evolution of digital asset treasury companies could look like.

We discussed the institutionalization of crypto; disciplined capital allocation during market cycles; why Lite Strategy chose to remain debt-free while repurchasing shares; Litecoin's role in the future of global payments; tokenized finance; LitVM; and why building infrastructure may ultimately create more value than simply accumulating digital assets.

Lite Strategy also announced continued investment into LitVM, a zero-knowledge layer-2 blockchain designed for Litecoin.

My biggest takeaway from the conversation was the fact that the future of treasury companies may not be measured by how much crypto they own, but by how much demand they create.

Historically viewed primarily as a payments network, Litecoin is now attempting to expand into programmable finance by supporting smart contracts, DeFi applications, and tokenized assets.

Whether that strategy succeeds remains to be seen, but it reflects a broader industry trend of blockchain networks increasingly investing in infrastructure rather than relying solely on price appreciation.

Perpetual Motion is our new section covering the latest in the booming perpetual futures market. This section is brought to you by Synthetix, the leading decentralized perpetual futures protocol of Ethereum Mainnet.

Leverage continued to build across crypto derivatives this week, but positioning remained relatively healthy. According to CoinGlass, total Bitcoin futures open interest stood at approximately $47.6 billion at the end of the week, essentially unchanged from the prior week, suggesting leveraged positioning remained resilient despite Bitcoin's pullback below $63,000. Across the broader market, total crypto futures open interest held above $114 billion, down modestly from roughly $118 billion the previous week—a decline of about 3–4% as traders trimmed risk following the Federal Reserve meeting and month-end volatility.

Meanwhile, Bitcoin funding rates stayed close to neutral, suggesting traders are adding exposure without the excessive long leverage that often precedes sharp market corrections.

Institutional participation also continued expanding. CME remained one of the largest regulated Bitcoin futures venues globally, as institutional investors use futures markets to hedge and gain directional exposure instead of speculating on spot price movements. 

That shift is helping crypto derivatives markets mature alongside the growing ETF ecosystem and broader institutional adoption.

Spot vs Derivatives Flows (what to watch):

The spot and derivatives markets told different stories last week. While Bitcoin briefly recovered above $64,700 on Thursday, the rally failed to hold into Friday, finishing the week at $62,814, down roughly 1.4% from a week earlier. Much of the week's upside appears to be driven by short-term positioning in derivatives rather than sustained spot demand.

Futures activity remained elevated throughout the week, although positioning eased slightly from the previous week. Total crypto futures open interest held above $114 billion, compared with roughly $118 billion a week earlier—a decline of about 3–4% as some leveraged positions were unwound. Bitcoin futures open interest remained near $47 billion, down modestly from approximately $49 billion the prior week, but still well above historical averages. Despite the pullback in positioning, funding rates stayed relatively neutral throughout the week, suggesting traders reduced exposure in an orderly fashion rather than through aggressive long liquidations.

Cross-asset correlations (what it tells you):

Price movements last week highlighted just how quickly cross-asset relationships can change in today's macro environment. Bitcoin traded independently for much of the week, briefly outperforming both equities and gold before giving back those gains on Friday. 

Meanwhile, the Nasdaq finished the week up approximately 1.8%, the S&P 500 gained roughly 1.0%, and gold advanced about 0.3% from Monday's close. Bitcoin ended lower.What’s The Risk Appetite

Risk appetite last week was selectively positive rather than broadly risk-on. U.S. equities finished the week higher, with the Nasdaq gaining approximately 1.8% and the S&P 500 rising about 1.0% from Monday through Friday. The stronger performance in technology stocks suggests investors are still willing to take on risk, particularly in areas tied to growth and earnings momentum.

Bitcoin did not confirm that optimism. BTC ended Friday near $62,814, down roughly 1.4% from Monday’s close and approximately 2.3% lower than the previous Saturday. The asset briefly recovered above $64,700 on Thursday, but that momentum faded quickly.

Gold also gained around 0.3% as investors maintained some demand for defensive assets. That combination of rising equities, modestly stronger gold, and weaker Bitcoin points to a market that was willing to add exposure, but still didn’t want to embrace risk indiscriminately.

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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.