Altcoins recovered abruptly on Tuesday after a strong liquidation in the previous 48 hours, with merchants taking advantage of the lowest prices as an opportunity to re -enter the market.
XRP led the recovery, winning 6% in the last 24 hours. Solana (Sol) and Dogecoin (Doge) rose approximately 4.5%, while Ethereum (ETH) added 5% during the same period. The open interest in these tokens also marked more, pointing out a renewed speculative activity. XRP once again stood out, with its open interest by increasing 4.2% on the last day.
The increase occurs when CME Group announced on Tuesday earlier that his futures suite Crypto exceeded $ 30 billion in open open interest for the first time. Sun and XRP futures crossed the $ 1 billion mark, with XRP becoming the fastest contract to reach that level, thus doing in just over three months. Analysts see this milestone as evidence of market maturity and a growing institutional participation in cryptographic derivatives, not to mention the interest rate that an XRP ETF spot could generate.
“I think people could be underestimating the demand of ETF Spot XRP,” wrote the expert in ETF Nate Geraci.
The broader market was also strengthened, with the Coindesk 20 (CD20) index 3.6% on Tuesday. Bitcoin (BTC) was left behind, winning only around 1%, but crossed the $ 111,000 brand after falling below $ 109,000 at a point before.
Both Bitcoin and Ether reached high records earlier this month, raised by monetary flexibility expectations and greater institutional demand. However, the feeling can be working too hot, according to the Blockchain Santiment analysis firm. In a report published on Sunday, the firm warned that optimism around a possible federal reserve rates in September has reached levels that often precede corrections.
“While optimism about a rate cut is feeding the market, social data suggests that caution is justified,” said Santiment, pointing out an increase in the online talk around the Fed decision. The firm warned that if the expectations of relaxing do not materialize, the market could see a “rapid correction.”
Merchants are now seeing Friday’s launch of the Personal Consumer Expenses Price Index (PCE) as a key signal for the next Fed movement.
