ETF inflows and extreme fear support short term market recovery.
The crypto market has recorded an upward trend over the last 24 hours with Bitcoin, Ethereum, XRP, and ADA recording increase in prices. The rally was accompanied by high macro correlation, increased derivatives open interest, and fresh ETF inflows.
Crypto Market Rebounds On Macro Correlation
Bitcoin, Ethereum, XRP, and ADA tracked the wider recovery in equity markets with TheBlock data showing an 81% 30-day correlation to the S&P 500. The rally indicated that broader risk sentiments affected price action.
At the time of writing, the overall valuation of the crypto market increased by 4% to $2.31 trillion, which broke the $2.30 trillion ceiling. The upward trend was also based on geopolitical developments as the U.S. President Donald Trump verified the death of the Supreme Leader of Iran Ali Khamenei. Following the announcement, there was stabilization in the global risk markets.
As CoinGape reported, the crypto market continued its sell-offs on Saturday as Bitcoin dropped to $63,000. The drop came after a combined U.S.-Israeli attack on Iran.
The coin has been trading at an above the $67,000 position for most periods of the week, but resumed its downward movement on Friday. The hopes of a renewed crypto market uptrend were also dampened by the economic changes in the United States.
Open Interest Rises Across BTC, ETH, XRP and ADA
Open interest grew in these crypto assets, signifying new positioning. Bitcoin open interest increased by 1.6% to $44.27 billion and Ethereum rose by 6.44% to almost $26 billion, as Coinglass data showed.
XRP open interest stood at $2.24 billion with a 1.19% increase within 24 hours. The open interest in Cardano growth rose by 3.57% to reach $462 million dollars, which validated the growing participation in derivatives.
CoinMarketCap reveals that the Altcoin Season Index also rose in the past week, moving from 29 to 34, indicating that altcoin interest is rising. This trend is common during the early stages of crypto market recovery.
ETF Flows Aligns With Rebound
The chat in the market was centered on ETF flows and political endorsement of digital assets. No particular announcement was a motivating factor in the prices, but the institutional story elevated the risk.
Based on SoSoValue data, U.S. spot Bitcoin ETFs had ended the last week with a net inflow of $787 million dollars and Ethereum ETFs had $81 million in net inflows. XRP ETFs registered net inflows of $9.55 million for the same period.
At the time of writing, BTC price was trading in an upward direction after increasing by 4.48% to $67,102. Ethereum rose by 7% to $2,007, as major altcoins recorded higher gains than Bitcoin. XRP and Cardano gained 5% each to reach $1.38 and $0.28.
Meanwhile, Willy Woo, a popular analyst, had predicted a big Bitcoin price crash is coming. He stated that Bitcoin price can go as low as $45,000 and global macro events can extend the price downtrend.
