- Bitcoin, Ethereum, and XRP prices rose slightly as retail investor demand remained weak.

The broader cryptocurrency market continues to face a downturn amid the ongoing war between the United States, Israel, and Iran, which is reflected in decreased demand from retail investors. The Fear and Greed Index stands at 8, indicating extreme fear among investors. Geopolitical tensions do not favor high-risk assets, and the accompanying macroeconomic uncertainty limits any potential recovery.

Fear and Greed Index | Source: Alternative

Demand for Bitcoin derivatives is declining, with open futures contracts falling to $48.28 billion on Monday, down from $48.80 billion the previous day. The open futures volume, which reflects the value of existing futures contracts, saw a slight increase last week, reaching close to $50 billion. If the conflict in the Middle East continues to negatively impact market sentiment, it could constrain Bitcoin’s near-term outlook.

Daily Trading Data for Bitcoin Futures | Source: CoinGlass

Ethereum derivatives paint a similarly bleak picture, as evidenced by the decline in open futures volume to $28.15 billion on Monday, from $29.22 billion the day before. Although open trading volume rose to $33.89 billion on March 17, the derivatives market remains in a downtrend, having peaked at $70.13 billion in August. This decline indicates investor distrust in the asset’s recovery potential and a reluctance to increase their exposure.

Open Trading Data for Ethereum Futures | Source: CoinGlass

Meanwhile, the open futures volume for XRP remained steady at $2.54 billion on Monday, compared to the previous day. Interest in this digital currency has generally declined since July, when it reached $10.94 billion, its all-time high of $3.66. The decrease in open trading volume weakens demand from retail investors, potentially jeopardizing XRP’s short-term recovery prospects.

Daily Trading Data for XRP Futures | Source: CoinGlass