- Crypto Today: Bitcoin continues its recovery above $66,000 while Ethereum and XRP lose momentum.

The price of Bitcoin (BTC) still leans upward in the short term, trading above $66,000 at the time of writing on Tuesday. This slight optimism comes amid easing geopolitical tensions in the Middle East, after reports said that the United States and Iran have signed a de facto peace agreement to reopen the Strait of Hormuz and end the blockade imposed on Iranian ports.

Alternative coins, including Ethereum (ETH) and Ripple (XRP), remain stable above the key support levels they recently regained at $1,700 and $1.23, respectively. However, their rise appears limited after hitting supply pockets at $1,800 for Ethereum and near $1.23 for XRP.

Sentiment in the broader cryptocurrency market is gradually improving, as shown by the Fear and Greed Index, which reached 23 in the extreme fear zone on Tuesday, up from 20 the previous day and higher than last week’s average of 10. This increase suggests that appetite for risky assets is slowly returning, as investors raise their exposure.

Crypto Fear and Greed Index | Source: Alternative
Derivatives gain momentum
Demand for perpetual futures option contracts is rising steadily, as reflected in Bitcoin’s open trading volume, which averaged $49.26 billion on Tuesday, up from $48.16 billion the previous day and $46.20 billion on Friday. The rebound in the derivatives market helps sustain this upward trend, as investors gain more confidence and open new positions.

Daily Bitcoin Futures Trading Data | Source: CoinGlass
Ethereum derivatives have maintained a slight upward trend, with open futures trading volume reaching $25.51 billion on Tuesday, up from $24.42 billion the previous day and $23.51 billion on Friday. A sustained recovery in Ethereum’s price requires a strong derivatives market.

Open Ethereum futures trading data | Source: CoinGlass
Open XRP futures trading volume is gradually trending upward, reaching $2.77 billion on Tuesday, up from $2.54 billion the previous day. CoinGlass data indicates a direct relationship between the derivatives market and XRP’s price, increasing the likelihood of an extended rebound as demand from retail investors continues to grow.
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