Bitcoin Returns Above $44,000 as Markets Rebound; Here’s Why

As per CoinMarketCap data, Bitcoin and other cryptocurrencies advanced on Tuesday, reversing an earlier pullback. Bitcoin reached intraday highs of $44,457 on Feb. 15, Ethereum surpassed the $3,000 barrier, and altcoins gained between 3% and 10%.

Hedera (HBAR), Helium (HNT), Gala (GALA), the Graph (GRT), Convex Finance (CVX), Kadena (KDA), Secret (SCRT), Moonriver (MOVR) have risen nearly 15% in the last 24 hours. Stocks rose as well, owing in part to lower Treasury bond yields.

BTC/USD Daily Chart

U.S. Treasury yields fell on Tuesday morning with Investors reconsidering safe-haven assets as geopolitical tensions between Russia and Ukraine mount. Russia’s Foreign Minister Sergey Lavrov’s words to Vladimir Putin seemed to imply that Russia might keep talking to the EU and NATO over Ukraine.

After falling from highs of $45,855 on Feb. 10, Bitcoin found support at $41,570. As per CoinMarketCap, BTC is currently trading at $44,273, up 4.44 percent in the previous 24 hours.

The Markets Remain Cautious

IntoTheBlock suggests that the markets remain cautious as the volume of Bitcoin Perpetual Swaps is still around 70% lower than what it was in 2021.

Markets remain cautious.#Bitcoin Perpetual Swaps volume is still trading roughly 70% down from the highs experienced in 2021.https://t.co/ZNSMhMaGNP pic.twitter.com/h5wio4jriq

— IntoTheBlock (@intotheblock) February 14, 2022

Source: IntoTheBlock

The total volume of buy orders filled by takers in BTC perpetual swaps, a sort of derivative product in the crypto market akin to traditional futures, has decreased overall, according to an IntoTheBlock chart.

High Swaps volume levels could signal short-term buying pressure and investor interest. Bitcoin Perpetual Swaps trading has not kept up with the recent increases in BTC’s spot price after falls in 2022, which could indicate caution among derivative traders. To corroborate the recent gain in crypto values, several analysts prefer to see a sustained increase in volume.

The Crypto Fear and Greed Index is currently at “fear”. The index, which uses a basket of factors to produce a nominal sentiment score from 0 to 100, measured 46 at the time of writing, having recovered to the ”neutral” zone earlier.

Image Credit: IntoTheBlock, TradingView, Shutterstock