Altcoins bounced sharply on Tuesday after a sudden sale over the past 48 hours, seizing low prices as an opportunity for traders to re-enter the market.
XRP led the recovery, earning 6% in the last 24 hours. Solana (Sol) and Dogecoin (Doge) each rose about 4.5%, while Ethereum (ETH) added 5% for the same period. Open interest across these tokens was also etched into higher ones, and signaling updated speculative activity. XRP is once again stands out, with open interest rising by 4.2% in the past day.
The rise comes as CME Group announced on Tuesday that its Crypto Futures Suite surpassed its $30 billion conceptual interest for the first time. Sol and XRP futures each exceeded $1 billion, making XRP the fastest contract to reach that level. Analysts don’t even mention the kind of interest that the XRP ETF could create this milestone.
“I think people may be underestimating the demand for spot XRP ETFs,” writes ETF expert Nate Geraci.
The broader market has also strengthened, with the Coindesk 20 Index (CD20) up 3.6% on Tuesday. Bitcoin (BTC) was behind, earning only about 1%, but crossed back past $111,000 after falling below $109,000 before 1am.
Bitcoin and ether reached record highs earlier this month, freed up by expectations of financial easing and increased institutional demand. According to blockchain analytics company Santiment, emotions can be too hot. In a report released Sunday, the company warned that optimism about the Federal Reserve’s potential fee reduction in September has reached levels that often preceded the correction.
“The optimism about interest rate cuts fuels the market, but social data suggests that caution is needed,” Santiment said, pointing to the surge in online chatals regarding the Fed’s decision. The company warned that if easing expectations fail to materialize, the market could see a “quick fix.”
Traders are currently viewing the release of their personal consumption spending (PCE) price index on Friday as a key signal for the Fed’s next move.
