Crypto Market Overview: Bullish sentiment rises as IEA releases oil reserves

• Bitcoin hovers below $70,000 as the broader market liquidations cross $245 million over the last 24 hours.
• Derivatives data shows an increase in bullish interest across the crypto market, as crude oil prices falling below $85 improve sentiment.
• Positive sentiment surrounding Bitcoin is growing amid the anticipation that the US-Iran war could be coming to an end.

Bitcoin (BTC) hovers around $70,000 at press time on Wednesday, holding its ground after a 2% surge the previous day. Derivatives and on-chain data show broadly bullish sentiment in the market as crude oil prices drop below $85, driven by the International Energy Agency's (IEA) proposal for its largest-ever release of crude oil reserves. 

Crypto market holds steady amid fragile macroeconomics

Bitcoin is trading around $70,000 on Wednesday, while Ethereum (ETH) and Ripple (XRP) hold ground above $2,000 and $1.35, respectively. The short-term recovery in the top cryptocurrencies aligns with relatively low liquidations in the broader market, totaling $245 million over the past 24 hours, including long liquidations of $132.13 million and short liquidations of $112.91 million. The largest liquidation occurred on the Hyperliquid exchange, totaling $3.32 million in the BRENTOIL/USD pair.  

On the derivatives side, bullish interest has steadily increased so far this week. The broader market Open Interest (OI) stands at $99.88 billion, up from $94.57 billion on Monday, indicating a surge in positional build-up and a risk-on sentiment among traders. Consistent with the increased retail interest, the 24-hour trading volume is at $210.60 billion, up from $136.38 billion on Monday. 

A similar trend is observed in Bitcoin, as OI rises to $46.06 billion on Wednesday from $43.07 billion on Monday, backed by increasing trading volume. 

Confirming bullish interest in Bitcoin, the long-to-short ratio is at 1.0417 on Wednesday, remaining above the 1 threshold since Monday, indicating a greater number of active long positions.

The renewed positive sentiment in the crypto market aligns with the IEA's proposal to release oil reserves to curb rising oil prices, driven by the Strait of Hormuz blockade amid the Middle East wars. According to the Wall Street Journal, this release would be the IEA's largest-ever release of reserves, exceeding the 182 million barrels released during the Russia-Ukraine war in 2022. 

The report suggests that the Group of Seven Nations could take a final decision on Wednesday. However, the proposal could be delayed if even a single country objects, risking surging oil prices and downward pressure on the crypto market.