The crypto market is showing signs of recovery, with Bitcoin and Ethereum prices rebounding, but data says it is still too early to buy as whale accumulation has yet to begin.
The global market capitalization of cryptocurrencies indicates that the industry is beginning to recover from a low of $2.21 trillion during the crypto collapse to $2.43 trillion today.
Due to the escalating volatility and unpredictability caused by the Bitcoin halving and Iran-Israel tensions, investors and traders pursued “buy the dip” opportunities while remaining cautious.
Bitcoin price also surpassed $66,500 on Monday, experiencing an increase of over 4%.
Bitcoin continues under duress due to low trading volumes and whale buying.
Since October of last year, the USDT Margin interest rate on Binance has reached an all-time low, according to CoinGlass data.
Ethereum has also experienced a price recovery, with a nearly 7% increase in value.
The current trading price is $3,257, representing a 24-hour maximum of the same amount.
Despite this, trading volumes have decreased by 35%.
Hong Kong’s Securities and Futures Commission (SFC) approval of spot Bitcoin ETF and spot Ethereum ETF applications is the cause of the recent increase in the prices of these cryptocurrencies.
The price of Ethereum is increasing, mainly because of the leading Ethereum ETF.
Amid concerns regarding investor protection and investigations into the Ethereum Foundation, the U.S. SEC still needs to approve the ETH ETF.
Additionally, altcoins such as Solana (SOL), XRP, Cardano (ADA), Dogecoin (DOGE), and Shiba Inu (SHIB) have experienced a surge in value, gaining between 5 and 10% over the past twenty-four hours.
As a result of the eradication of altcoin leverage, funding rates have become negative.
Whales Are Not Buying Bitcoin
Although specific cryptocurrencies have experienced whale accumulation, Bitcoin has yet to witness whale purchases.
IntoTheBlock reports that the current concentration of major holders is a mere 11% on-chain.
Such addresses contain between 0.1 and 1 percent of the circulating supply of Bitcoin.
Confirmation of a recovery in the cryptocurrency market has yet to materialize.
In addition, a CryptoQuant analyst disclosed that the price of Bitcoin is higher than the realized price of short-term holders (STH) billionaires.
This suggests that Bitcoin is in high demand, underscoring the superior returns of long-term investments.
The purchasers are derivatives traders, according to data from CoinGlass.
In the previous twenty-four hours, total open interest in BTC futures increased by over 3%, while total open interest in ETH futures increased by over 4%.
The OI for CME Bitcoin Futures increased by 4%.
