$39B returns to crypto markets – Bitcoin’s macro relief rally may fade WITHOUT…

Optimism around U.S. Secretary of State Marco Rubio-led ceasefire talks lifted risk sentiment across crypto markets.

The talks followed a reported agreement between the U.S. and Iran on a 60-day ceasefire framework. Both sides retained the option to extend it through mutual agreement.

Amid the development, the total crypto market cap increased by roughly $39 billion, up 1.37%, and stabilized near $2.19 trillion. Bitcoin [BTC] reclaimed the $64,000 level at press time.

Ethereum [ETH] also showed signs of recovery and traded around $1,723. However, average daily trading volume remained below normal levels at $52 billion to $55 billion. That suggested conviction remained limited despite the rebound.

Are traders turning bullish?

As markets recovered, traders gradually rebuilt exposure through derivatives. Open Interest stood at roughly $108 billion over the past 24 hours.

The rise in Open Interest suggested participants positioned for further upside. Even so, overall sentiment remained cautious rather than aggressive.

Source: CoinGlass

Funding Rates stayed near neutral to slightly positive, indicating longs paid only a modest premium to maintain positions. Meanwhile, the Long/Short Ratio remained balanced, with longs at 50.35% and shorts at 49.65%.

Source: CoinGlass

Liquidations also eased to roughly $146 million after earlier volatility flushed weaker positions. That pointed to improving risk appetite.

Even so, leverage appeared to rebuild faster than conviction. This left traders focused on whether stronger Spot demand and fresh capital inflows would emerge.

Is spot demand returning?

Despite improving derivatives positioning, Spot demand remained subdued.

Volumes stabilized following last week’s decline but remained well below levels typically associated with a sustained trend reversal. In addition, Spot Taker CVD remained slightly negative to neutral across most exchanges. Buyers continued to struggle for decisive control.

Source: CryptoQuant

Moreover, the Coinbase Premium Index remained below zero, signaling weak U.S. demand. By contrast, futures activity continued to improve.

That divergence suggested derivatives traders remained more optimistic than Spot participants.

As a result, the rebound’s durability may depend on whether stronger Spot demand enters the market. Without it, leveraged price action could continue driving volatility.

Final Summary

• Crypto markets recovered as geopolitical tensions eased, though stronger demand remains necessary to sustain the rebound.
• Improving sentiment has encouraged traders to rebuild exposure, but lasting gains still require fresh capital inflows.

Source