On May 12, the total crypto market capitalization reached its lowest close in 10 months and the metric continues to test the $1.23 trillion support level. However, the following seven days were reasonably calm while Bitcoin (BTC) gained 3.4% and Ether (ETH) added a modest 1.5%. Presently, the aggregate crypto cap stands at $1.31 trillion.
Ripples from Terra’s (LUNA) collapse continue to impact crypto markets, especially the decentralized finance industry. Moreover, the recent decline in traditional markets has led to a loss of $7.6 trillion in market cap from the Nasdaq Stock Market Index, which is higher than the dot-com bubble and the March 2020 sell-offs.
On May 17, U.S. Federal Reserve Chairman Jerome Powell confirmed their intention to suppress inflation by raising interest rates but he cautioned that the Fed’s tightening movement could impact the unemployment rate.
The bearish sentiment spilled to crypto markets and the “Fear and Greed Index,” a data-driven sentiment gauge, hit 8/100 on May 17. This is the metric’s lowest value since March 28, 2020, two weeks after the generalized crash that sent oil futures to negative levels and brought Bitcoin (BTC) below $4,000.
Below are the winners and losers from the past seven days. While the two leading cryptocurrencies presented modest gains, a handful of mid-capitalization altcoins rallied 15% or higher.
„Monero“ (XMR) rallied 22% as investors awaited the “tail emission” to be implemented at block 2,641,623 or sometime around June 4. The community nusprendė to include a 0.6 XMR minimum reward in every block, so miners are not 100% reliant on transaction fees.
Kosmosas (ATOM) gained 16.5%, a movement that seems a part of a broader retracement that started on May 12 when ATOM fell to its eleven-month low near $8. It is worth noting that its parent chain, Cosmos Hub, witnessed massive capital outflows from its liquidity pools, according to reporting from Cointelegraph.
Klaytn (KLAY), a blockchain-backed by South Korean internet giant Kakao, announced on May 16 that it would provide infrastructure, and initial nodes, and develop early use cases for the Blockchain-based Service Network (BSN), providing an entry into the Chinese market
Tether premium rodo nedidelį diskomfortą
„OKX Tether“ (USDT) „premium“ yra geras Kinijos mažmeninės prekybos kriptovaliutų paklausos matuoklis. Jis matuoja skirtumą tarp Kinijoje vykdomų peer-to-peer (P2P) sandorių ir JAV dolerio.
Excessive buying demand tends to pressure the indicator above fair value at 100% and during bearish markets, Tether’s market offer is flooded and causes a 4% or higher discount.
The Tether premium peaked at 5.4% on May 12, its highest level in more than six months, but the movement could have been related to the Terra ecosystem’s massive outflows, which were mainly the USD Terra (UST) stablecoin.
More recently, the indicator showed a modest deterioration as it currently holds a 1.8% discount. The lack of retail demand is not especially concerning because the total cryptocurrency market capitalization lost 34% in the past month.
Altcoin futures reflect disinterest in leverage
Neterminuotos sutartys, taip pat žinomos kaip atvirkštiniai apsikeitimo sandoriai, turi įterptąjį tarifą, kuris paprastai apmokestinamas kas aštuonias valandas. Biržai naudoja šį mokestį, kad išvengtų valiutos keitimo rizikos disbalanso.
Teigiamas finansavimo rodiklis rodo, kad ilgieji (pirkėjai) reikalauja didesnio sverto. Tačiau atsitinka priešinga situacija, kai šortai (pardavėjai) reikalauja papildomo sverto, todėl finansavimo norma tampa neigiama.
Perpetual contracts are reflecting mixed sentiment as Bitcoin and Ethereum hold a slightly positive (bullish) funding rate, but altcoins signal the opposite. For example, Solana’s (SOL) negative 0.35% weekly rate equals 1.5% per month, which is not a concern for most derivatives traders.
Considering that derivatives indicators are showing little improvement, there’s a lack of trust from investors as the total crypto market capitalization battles to keep the $1.23 trillion support. Until this sentiment improves, the odds of an adverse price movement remain high.
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Source: https://cointelegraph.com/news/altcoin-prices-briefly-rebounded-but-derivatives-metrics-predict-worsening-conditions