The cryptocurrency failed to break above the $1.1 trillion market cap resistance that it has held firm for the past 54 days. Two leading coins hold back the market as Bitcoin (bitcoin) loses 2.5% and Ether (Ethereum) has retraced 1% over the past 7 days, but a handful of altcoins are showing strong rallies.
The total market capitalization of the crypto market fell by 1% to $1.07 trillion between July 29 and August 5.market is negative Affected The U.S. Securities and Exchange Commission (SEC) is investigating every U.S. cryptocurrency exchange after the regulator, reports Aug. 4 Billing a former Coinbase employee with insider trading.
While the two leading crypto assets were unable to post weekly gains, traders’ interest in altcoins was unaffected.Investors Positively Influenced by Coinbase Exchange Partner with BlackRockthe world’s largest financial asset management company, responsible for investments worth $10 trillion.
Coinbase Prime, a service to BlackRock clients, is an institutional trading solution that provides trading, custody, financing and staking for over 300 digital assets. Thus, comparing winners and losers among the top 80 coins provides skewed results, with 10 of them up 12% or more in the past 7 days:
After Instagram, FLOW is up 48% Announce The Flow blockchain is supported through Dapper Wallet. The social network controlled by Meta (formerly Facebook) is expanding non-fungible token integration.
Filecoin (FIL) up 38% The following August 2nd v16 Skyr upgrade, hardening the protocol to avoid bugs.
VeChain (VET) rose 16.5% after some news sources mistakenly announced a partnership with Amazon Web Services (AWS).VeChain Foundation explain AWS references were first cited in the May 9 case study.
Tether premium deteriorates slightly
OKX Tether (USDT) premium is a good indicator of demand from retail traders of cryptocurrencies in China. It measures the difference between Chinese peer-to-peer transactions and the U.S. dollar.
Excessive buying demand tends to stress indicators above 100% of fair value, and during bearish markets, Tether’s market quotes are flooded, resulting in discounts of 4% or more.
Currently, Tether’s premium is 98.4%, its lowest level since June 10. While a far cry from retail panic selling, the indicator has shown a modest deterioration over the past week.
Weak retail demand, however, is not a cause for concern, as it partly reflects a 69% year-to-date decline in the total cryptocurrency market capitalization.
Futures market sentiment is mixed
Perpetual contracts, also known as inverse swaps, have embedded rates that are typically charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.
A positive funding rate indicates that bulls (buyers) need more leverage. However, when the shorts (sellers) need additional leverage, the opposite happens, causing the funding rate to go negative.
As mentioned above, the cumulative 7-day funding rate is either slightly positive or neutral for the largest cryptocurrencies by open interest. These data indicate a balance of demand between leveraged longs (buyers) and shorts (sellers).
Given the lack of demand for Tether in Asia and a mixed premium for perpetual contracts, traders lacked confidence as the total cryptocurrency capitalization struggled against resistance at $1.1 trillion. So, for now, bears appear to have the upper hand, given the uncertainty created by the SEC charges against a former Coinbase manager.
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