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Bitcoin other cryptocurrencies market crash 22

According to data, Bitcoin and other cryptocurrencies might fall by 20% and hit new yearly lows.

The overall market worth of all cryptocurrencies fell to the $1 trillion level, and traders’ unfavourable opinion is reflected in the weak stablecoin demand and the largely missing financing rate.

The total crypto market capitalization soon fell to $1 trillion when the rising wedge formation was shattered on August 17, making the bulls’ hope of recovering the $1.2 trillion support,

Things are becoming worse across the board, not just in the crypto markets. WTI oil’s price fell by 3.6% on August 22 and was down 28% from its peak of $122 on June 8. US Treasury 5-year yield reversed course and is now trading at 3.16% after falling to a low of 2.61% on August 1. All of these point to investors’ waning confidence in the central bank’s practises of requesting additional funds in order to hold these debt instruments. Bitcoin other cryptocurrencies

According to David Kostin, chief U.S. equities strategist at Goldman Sachs, the S&P 500’s risk-reward ratio is currently biassed to the downside following a 17% surge since mid-June. The U.S. Federal Reserve would have to tighten the economy more firmly if inflation surprises to the upside, according to Kostin, which would have a detrimental impact on values.

In the meanwhile, prolonged lockdowns purportedly designed to stop the spread of COVID-19 in China and issues with property debt prompted the PBOC to lower its five-year lending prime rate to 4.30% from 4.45% on August 21. The outlook for cryptocurrency investors is “neutral-to-bearish” on the cusp.

Because of the risk-off attitude spurred on by growing inflation, investors anticipated additional interest rate increases. As a result, their enthusiasm for growth stocks, commodities, and cryptocurrencies will eventually wane. Because of this, traders have a tendency to look for security in the US dollar and inflation-protected bonds during uncertain times. Bitcoin and other cryptocurrencies

On August 21, the Fear and Greed Index registered a 27/100, the lowest value in the previous 30 days for this data-driven emotion metre. The activity demonstrated that investors’ opinion had changed from a neutral 44/100 reading on August 16 and that traders are now more wary of the short-term price movements in the cryptocurrency market.

The winners and losers from the previous seven days are listed below as the overall market capitalization of cryptocurrencies fell by 12.6% to $1.04 trillion. While Bitcoin (BTC) experienced a 12% decrease, a few altcoins with mid-capitalization experienced drops of 23% or more.

As its community voiced hope for the impending “Mandel” hard fork in September, EOS rose 34.4%. As a result of the change, it is anticipated that the partnership with Block.one will completely expire.

Chiliz (CHZ) increased 2.6% after Socios.com paid $100 million for a 25% stake in the Barcelona Football Club’s new digital and entertainment section. Bitcoin other cryptocurrencies

After a bankruptcy filing report on August 14 showed a $2.85 billion funds mismatch, Celsius (CEL) fell by 43.8%.

Most tokens performed poorly, although China’s retail demand slightly increased.

The OKX Tether (USDT) premium is a reliable sign of demand from China-based retail cryptocurrency dealers. The value of peer-to-peer (P2P) transactions made in China is contrasted with that of the US currency. Bitcoin other cryptocurrencies

Excessive demand for purchases tends to push the indicator over fair value at 100%, and in bearish markets, the market offer for Tether is oversaturated, resulting in a discount of 4% or more. Bitcoin and other cryptocurrencies.

 

Bitcoin, Ethereum

The price of Tether in Asia-based peer-to-peer markets peaked on August 21 and is currently discounted by 0.5%. The index, however, is still below the neutral to negative area, indicating weak demand from retail purchases. Bitcoin other cryptocurrencies

In order to eliminate externalities particular to the Tether instrument, traders must also examine futures markets. Inverse swaps and perpetual contracts both feature imbedded rates that are typically levied every eight hours.

A higher demand for leverage by longs (buyers) is indicated by a positive funding rate. Bitcoin other cryptocurrencies

Following the maintenance of a comparatively flat financing rate for Bitcoin and Ether, perpetual contracts showed a neutral attitude. The equilibrium between leveraged longs and shorts led to the current fees. Bitcoin other cryptocurrencies

Even Ether Classic’s (ETC) 0.40% weekly negative funding rate was unable to deter short sellers for the remaining altcoins. Bitcoin other cryptocurrencies

A 20% decline to retest annual lows is expected to occur.

Investors are just slightly concerned about a more severe global market correction, according to derivatives and trading indications. Tether’s tiny discount when expressed in Chinese yuan and the futures markets’ almost-zero financing rates serve as indicators that there are no buyers.

Given that the total cryptocurrency market capitalization is currently testing the crucial $1 trillion support, these neutral to negative market signs are concerning. The likelihood of cryptocurrency touching annual lows near $800 billion is significant if the U.S. Federal Reserve successfully maintains its policy of tightening the economy to combat inflation. Bitcoin and other cryptocurrencies

The author’s thoughts and opinions alone, not necessarily those of Cointelegraph, are conveyed in this article. When selecting a choice, you should do your own study. Bitcoin other cryptocurrencies

Bitcoin and other cryptocurrencies