Long positions, US demand driving BTC and ETH rally, says analyst

The recent price surge in Bitcoin (BTC) and Ethereum (ETH) has been driven by an increase in perpetual futures long positions and rising demand from the U.S., according to an analysis by CryptoQuant senior analyst Julio Moreno, as reported by The Block. In the 24 hours following the announcement of a U.S.-Iran ceasefire on April 7, open interest in BTC and ETH perpetual futures rose by $2.1 billion and $2.2 billion, respectively, reaching a one-month high. Moreno suggested this rally was not merely the result of short position liquidations but was fueled by traders actively opening new long positions. Furthermore, the market buy-sell ratio for both BTC and ETH surpassed one, indicating a dominance of buying pressure. The Coinbase Premium Index, a reflection of U.S. demand, also turned positive for both assets. The analyst concluded that as long as the ceasefire holds, demand from the U.S. will continue to support higher prices.