The cryptocurrency market is showing signs of recovery, with Bitcoin and Ethereum prices rebounding significantly. However, experts warn that it may be too early to buy due to the lack of whale accumulation and rising volatility.

The global market cap of cryptocurrencies has increased from a low of $2.21 trillion during the recent crash to $2.43 trillion today, indicating a positive trend. Traders and investors have taken advantage of the "buy the dip" opportunity, but they remain cautious due to the rising volatility and uncertainty in response to Bitcoin halving and Iran-Israel tensions.

Bitcoin's price surpassed $66,500, witnessing an over 4% upside move on Monday. However, Bitcoin is still under pressure due to low trading volumes and not much buying by whales. The USDT Margin interest rate on Binance has even hit a new low since October last year, indicating a lack of buying interest from large investors.

Ethereum's price has also rebounded higher, witnessing a nearly 7% jump in prices. The price is currently trading at $3,257, with a 24-hour high of $3,267. However, the trading volumes are down 35%, indicating a lack of buying interest from traders.

The recent increase in Bitcoin and Ethereum prices is attributed to Hong Kong's Securities and Futures Commission (SFC) approving spot Bitcoin ETF and spot Ethereum ETF applications. Ethereum price is specifically rising due to the first spot Ethereum ETF. The U.S. SEC is yet to approve ETH ETF amid concerns about investigations into Ethereum Foundation and investor protection.

Altcoins such as Solana (SOL), XRP, Cardano (ADA), Dogecoin (DOGE), Shiba Inu (SHIB), and others have also rebounded higher, witnessing 5-10% gains in the last 24 hours. Altcoins leverage has been completely wiped out, and funding rates have turned negative.

Despite some altcoins witnessing whale accumulation, Bitcoin is yet to see the buying from whales. The concentration of large holders is now just 11%, including addresses that hold 0.1% to 1% of Bitcoin circulating supply. This indicates that the crypto market recovery hasn't been confirmed yet.

Moreover, a CryptoQuant analyst revealed that BTC price is above short-term holders (STH) whales' realized price, indicating strong demand for Bitcoin. However, this also highlights the greater returns of long-term investment.

The buying is actually coming from derivatives traders, as per CoinGlass data. Total BTC futures open interest increased by more than 3% in the last 24 hours, and total ETH futures open interest grew by over 4%. CME Bitcoin Futures OI jumped 4%.

Meanwhile, the US dollar index (DXY) has climbed above 106.10, the highest level since October, and the US 10-year Treasury yield jumped to a 6-month high of 4.6. As Bitcoin moves opposite to DXY and Treasury yields, the pressure is still growing.

Conclusion:

In conclusion, the cryptocurrency market is showing signs of recovery, but it is still too early to buy due to the lack of whale accumulation and rising volatility. The buying is coming from derivatives traders, and the recent increase in Bitcoin and Ethereum prices is attributed to the approval of spot Bitcoin and Ethereum ETFs. However, the US dollar index and Treasury yields are still climbing, indicating pressure on the crypto market.