Crypto derivatives data signals improving investor sentiment and a possible trend reversal By Cointelegraph

This week the total crypto market capitalization rallied 10% to $1.68 trillion, which is a 25% recovery from the Jan. 24 bottom. It’s too early to suggest that the market has found a bottom but two key indicators — The Tether/CNY premium and CME futures basis — have recently flipped bullish, signaling that positive investor sentiment is backing the current price recovery.

Total crypto market cap excluding stablecoins, in USD billion. Source: TradingView

Traders should not assume that the bear trend has ended by merely looking at price charts. For example, between Dec. 13 and Dec. 27, the sector’s total market capitalization bounced from a $1.9 trillion low to $2.33 trillion. Yet, the 22.9% recovery was completely erased within nine days as crypto markets tanked on Jan. 5.

Peer-to-peer CNY/USDT vs. . Source: OKX
BTC CME 1-month forward contract premium vs. Coinbase/USD. Source: TradingView