The cryptocurrency market is on the mend, with the total value rising from a low of $2.21 trillion following the crypto downturn to its current level of $2.43 trillion. Investors and traders seized the chance to buy at lower prices during this dip. However, they remain wary given the heightened volatility and apprehension arising from Bitcoin‘s halving event and the escalating tensions between Iran and Israel.
The price of Bitcoin rose above $66,500 on Monday, resulting in a 4% increase. However, Bitcoin is still facing pressure as large investors, or “whales,” have yet to significantly buy, and trading volumes remain low. Data from CoinGlass indicates that the USDT Margin interest rate on Binance has reached a new low not seen since October of last year.
The cost of Ethereum has bounced back, recording approximately a 7% increase in value. At present, it is being exchanged at $3,257, with a peak price of $3,267 in the last 24 hours. Yet, the trading activity has decreased by nearly 35%.
The recent increase in Bitcoin and Ethereum prices is attributed to Hong Kong’s Securities and Futures Commission (SFC) approving spot Bitcoin ETF and spot Ethereum ETF applications. Ethereum price is specifically rising due to first spot Ethereum ETF. The U.S. SEC is yet to approve ETH ETF amid concerns about investigations into Ethereum Foundation and investor protection.
Some alternative coins like Solana (SOL), XRP, Cardano (ADA), Dogecoin (DOGE), Shiba Inu (SHIB), among others, have bounced back with gains of 5-10% in the past 24 hours. Previously high levels of leverage in these altcoins have been erased, and funding rates have now turned negative.
Whales Are Not Buying Bitcoin
Although some altcoins have experienced accumulation by whales, Bitcoin has not yet shown signs of similar buying behavior from large investors. According to IntoTheBlock’s on-chain analysis, only around 11% of Bitcoin is currently held by large holders, representing addresses that control between 0.1% and 1% of the total circulating supply. Consequently, it remains uncertain if the crypto market has fully recovered yet.
Additionally, a CryptoQuant expert pointed out that the current Bitcoin price surpasses the average purchase price for short-term holders. This signifies robust demand for Bitcoin and emphasizes the potential benefits of holding Bitcoin for an extended period.
Derivatives traders are responsible for the recent surge in buying, according to data from CoinGlass. Open interest for Bitcoin and Ethereum futures contracts has risen significantly within the past day: Bitcoin futures open interest climbed more than 3%, while Ethereum futures open interest grew by over 4%. Similarly, there was a notable increase of around 4% in open interest for CME Bitcoin Futures.
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2024-04-15 14:57