Early signs of resurgence in the cryptocurrency market. The market value has risen to $2.43 trillion globally.
With no whale purchases, the price of ETH rises above $3200, and the cost of bitcoin surpasses $66,500.
Derivatives traders’ buying interest is still higher.
The U.S. Treasury yield and DXY both jumped to a six-month high.
From a low of $2.21 trillion during the crypto meltdown to a current market worth $2.43 trillion, the crypto market is beginning to show signs of recovery. In reaction to Bitcoin’s halving and the tensions between Iran and Israel, traders and investors seized the opportunity to “buy the dip,” but they are still wary.
On Monday, the price of Bitcoin increased by more than 4% and crossed $66,500. Because of the low trading volumes and insufficient whale purchasing, the cost of bitcoin is still under pressure. According to CoinGlass data, the interest rate on USDT Margin on Binance has even decreased since October of last year.
Additionally, the price of Ethereum has increased, rising by around 7%. With a 24-hour high of $3,267, the price is currently trading at $3,257. However, trade volumes have declined by 35%.
The approval of spot Ethereum ETF and spot Bitcoin ETF applications by Hong Kong’s Securities and Futures Commission (SFC) is responsible for the recent surge in the values of these two virtual currencies. Because of the first-spot Ethereum ETF, the price of Ethereum is explicitly climbing. Amid worries regarding inquiries into the Ethereum Foundation and investor safety, the U.S. SEC has not yet approved the ETH ETF.
With advances of 5–10% over the past day, altcoins like Solana (SOL), XRP, Cardano (ADA), Dogecoin (DOGE), Shiba Inu (SHIB), and others have also recovered. The leverage of altcoins has entirely vanished, and funding rates have sunk.
Whales Do Not Purchase Bitcoin
While specific cryptocurrencies have experienced whale accumulation, whale purchases of Bitcoin have not yet occurred. According to IntoTheBlock’s on-chain data, the concentration of significant holdings is now only 11%. This comprises addresses that possess 0.1% to 1% of the total Bitcoin supply in circulation. Consequently, the revival of the cryptocurrency market still needs to be discovered.
Furthermore, according to a CryptoQuant analyst, the price of Bitcoin is higher than the realized price of short-term holders (STH) whales. This highlights the higher returns on long-term investments and also shows that there is a huge demand for Bitcoin.
What’s Releasing the Cryptocurrency Market?
According to CoinGlass data, traders dealing in derivatives make the purchases. On the last day, the total open interest in BTC and ETH futures rose by more than 3% and 4%, respectively. O.I. for CME Bitcoin Futures surged 4%.
The U.S. 10-year Treasury yield reached a six-month high of 4.6, while the U.S. dollar index (DXY) surged above 106.10, the highest level since October. Pressure is still mounting as Bitcoin moves in the opposite direction of Treasury yields and DXY.
