Altcoins ran back sharply on Tuesday after a steep sale over the previous 48 hours, with dealers who seized lower prices as an opportunity to enter the market.
The XRP led the recovery and got 6% over the last 24 hours. Solana (Sol) and Dogecoin (DODE) each climbed to approx. 4.5% while Ethereum (ETH) added 5% in the same period. Open interest across these tokens also crossed higher, which signaled renewed speculative activity. The XRP once again stood out with its open interest increasing 4.2% on the last day.
Uptick comes when CME Group announced earlier Tuesday that its Crypto Futures Suite surpassed $ 30 billion in nominal open interest for the first time. The Sun and XRP Futures crossed each $ 1 billion dollars mark, with the XRP becoming the fastest contract to reach this level – then in just over three months. Analysts see this milestone as evidence of market maturity and growing institutional participation in cryptoderivatives, not to mention the kind of interest that a spot XRP ETF may generate.
“Think people can underestimate the demand for Spot XRP ETFs,” wrote Etf expert Nate Geraci.
The wider market also strengthened with the Coindesk 20 index (CD20) increased 3.6% on Tuesday. Bitcoin (BTC) lags back and won only approx. 1%, but crossed back over $ 111,000 mark after falling below $ 109,000 at a time of time earlier.
Both Bitcoin and Ether hit record highs earlier this month, raised by the expectations of monetary easing and increased institutional demand. Still, the mood can run too hot, according to the blockchain analysis company Santiment. In a report published on Sunday, the company warned that optimism about a potential federal reserve rate in September has reached levels that often precede corrections.
“While optimism about a rate cut is burning the market, social data suggests caution,” said Santiment, pointing to an increase in online talk around the bold decision. The company warned that if the expectations of ease are not realized, the market could see a “quick correction.”
Dealers now see Friday’s release of the Price Index for Personal Consumption Expenses (PCE) as a key signal for Fed’s next move.
