Bitcoin is down 6.6% today, with most other top coins following suit by a similar margin as the crypto market cap falls to $1.65T at press time according to CoinMarketCap data from January 11th 2019.
The total value of cryptocurrencies has fallen for two straight days and over this period the number of altcoins seen in the top 100 has dwindled considerably, mostly due to Bitcoin’s decline but also because there are many new entries on Coinmarketcap that have been created in recent weeks or months – some of which had yet even be listed
For the last 24 days, the entire crypto market capitalization has been trading in a declining channel, with the $1.65 trillion support level being retested on May 6. Following the decline to $1.65 trillion, Bitcoin (BTC) fell to $35,550, its lowest price in 70 days.
The total market capitalization of cryptocurrency is USD billion. TradingView (source)
In terms of performance, the total market capitalization of all cryptocurrencies fell 6% in the last seven days, but this small decline in the overall market does not reflect several mid-capitalization altcoins, which lost 19% or more in the same time period.
Altcoins, as predicted, fell the most.
Bitcoin has plummeted 6% in the previous seven days, while Ether (ETH) has dropped 3.5 percent. In the meanwhile, altcoins have gone through a massacre. The top gainers and losers among the top 80 cryptocurrencies by market capitalization are shown below.
The top 80 coins have weekly winners and losers. Nomics is the source of this information.
After TRON DAO launched a USDD, a decentralized stablecoin, on May 5, Tron (TRX) soared 26.9%. The BTTC cross-chain protocol connects the algorithmic stablecoin to Ethereum and BNB Chain (BNB).
1inch (1INCH) gained 5.6 percent as the decentralized exchange governance program became the network leader for Polygon (MATIC) after executing 6 million swaps on the network.
STEPN (GMT), the popular move-to-earn lifestyle app’s native token, fell 35.7 percent following a 70 percent gain between April 18 and April 28. Apecoin (APE) saw a similar trend after increasing by 94% from April 22 and April 28.
On May 6, the Tether premium became negative.
The OKX Tether (USDT) premium monitors the difference between China-based peer-to-peer transactions and the US currency to determine China-based retail demand.
The indication is 100 percent over fair value due to excessive purchasing demand. Tether’s market offer, on the other hand, is inundated during adverse markets, resulting in a 4 percent or larger discount.
Peer-to-peer Tether (USDT) vs. USD/CNY Author: OKX
On April 30, the OKX Tether premium peaked at 1.7 percent, suggesting some retail oversupply. Over the following five days, however, the statistic returned to a 0% premium.
The OKX Tether premium has changed to -1 percent negative in the early hours of May 6. Retail morale deteriorated after Bitcoin fell below $37,000, according to data.
Market attitude on futures is mixed.
Inverse swaps, often known as perpetual contracts, feature an imbedded rate that is charged every eight hours. This fee is used by exchanges to minimize exchange risk imbalances.
Longs (buyers) seek additional leverage when the financing rate is positive. When shorts (sellers) need more leverage, the financing rate falls below zero.
7-day perpetual futures financing rate accumulated. Credit: Coinglass
The cumulative seven-day financing rate for Bitcoin and Ether is slightly positive, as illustrated above. Longs (buyers) are showing somewhat stronger demand, but not enough to cause traders to liquidate their holdings. A positive 0.15 percent weekly rate, for example, equals 0.6 percent per month and is unlikely to do damage.
The 7-day perpetual futures financing rate for cryptocurrencies, on the other hand, was -0.30 percent. This rate equates to 1.2 percent every month and shows that shorts are in increased demand (sellers).
The negative financing rate on altcoins and signs of poor retail demand, as evidenced by OKX Tether data, imply that traders are hesitant to purchase at the important $1.65 trillion crypto market capitalization. Buyers seem to be waiting for additional price drops before jumping in, so expect further price drops.
The author’s thoughts and opinions are purely his or her own and do not necessarily represent those of Cointelegraph. Every investing and trading decision is fraught with danger. When making a choice, you should do your own research.