What to know:

• XRP led a significant crypto recovery on Tuesday, climbing 6% as traders reinvested after a prior sell-off.
• CME Group revealed that crypto futures reached $30 billion in open interest, with XRP being the fastest to reach the $1 billion mark in under three months.
• Analysts caution about heightened sentiment as critical PCE inflation data approaches on Friday.

Market Dynamics

Altcoins rebounded dramatically after a two-day drop, with many traders seizing lower valuations to re-enter the market. XRP’s 6% increase over the last 24 hours was notable, alongside Solana (SOL) and Dogecoin (DOGE), both soaring approximately 4.5%, and Ethereum (ETH) adding 5%.

XRP’s open interest increased 4.2%, signifying renewed trading activity as CME Group announced a historic high in its crypto futures suite, surpassing $30 billion.

Meanwhile, Bitcoin’s recent behavior showed it bouncing back over $111,000 after briefly dropping below $109,000 earlier. As optimism grows regarding future Federal Reserve rate adjustments, analysts are monitoring the upcoming Personal Consumption Expenditures (PCE) Price Index for economic signals.