The total market value of cryptocurrencies falls below $ 1.2T, but data shows that traders are less inclined to sell

The total market value of cryptocurrencies falls below $ 1.2T, but data shows that traders are less inclined to sell – Mail Bonus

The total market value of cryptocurrencies has been declining for the past 29 days and currently shows support at $ 1.17 trillion points. Over the past 7 days, Bitcoin (BTC) showed a modest 2% decrease and Ether (ETH) faced a 5% correction.

Total market value of cryptocurrencies, billions of US dollars. Source: TradingView

The CPI on 10 June showed an 8.6% year-on-year increase and the cryptocurrency and stock markets were immediately affected, but it is not certain whether the figure will convince the US Federal Reserve to hesitate to raise interest rates in the future.

Mid-cap altcoins fell further, sentiment is still bearish

A generally bearish attitude due to weak macroeconomic data and uncertainty regarding the Central Bank’s ability to curb inflation has had a serious effect on the cryptocurrency market.

The fear and greed index went to 11/100 on June 9 and the data-driven attitude meter has been below 20 since May 8.

Crypto Fear & Greed Index. Source: alternative.me

This persistent “high fear” reading indicates that investors are worried, but at the same time it reportedly provides an opportunity to buy.

Below are the winners and losers of the last seven days. Although two leading cryptocurrencies showed modest losses, a handful of medium-capitalized altcoins fell by 14% or more.

Weekly winners and losers among the top 80 coins. Source: Nomics

The Helium Society (HNT) approved the HIP-51 proposal, which covers the economic and technical projects needed to support new users, devices and different types of networks, including mobile phones, VPNs and WiFi.

Chainlink (LINK) rose 22% after developers released improved Chainlink 2.0 roadmaps, including native IDs.

Theta Token (THETA) rose by 9.7% when the Internet announced live support using API technology that made instant and easy connection to apps and websites.

WAVES lost 28% after the $ 1,000 daily withdrawal limit for stablecoins in Vires Finance was introduced to avoid further pressure on the Neutrino Protocol Stablecoin (USDN).

Data show that traders are less likely to sell at current levels

The OKX Tether (USDT) premium is a good indicator of China’s retail demand in China. It measures the difference between Chinese P2P and the US dollar.

Excessive buying demand tends to push the index above fair value at 100%, and in a bearish market, Tether’s market offer is flooded, resulting in a 4% or higher discount.

Tether (USDT) peer to USD / CNY. Source: OKX

On May 31, the Tether price in Asian peer-to-peer markets hit a 4% discount, indicating strong retail pressure. Interestingly, the situation improved on June 10 after the indicator moved to a 1.5% discount. Despite being negative, the measure shows investors’ willingness to buy the dip, as total cryptocurrency financing fell below $ 1.2 trillion.

To exclude external influences specific to the Tether device, traders must also analyze the cryptocurrencies of the future market. Perpetual contracts, also known as inverse swaps, have a built-in exchange rate that is usually charged every eight hours. Stock exchanges use this fee to avoid exchange rate risk imbalances.

A positive financing ratio indicates that longs (buyers) demand more indebtedness. However, the opposite is true when shorts (sellers) demand increased indebtedness, which causes the financing ratio to be negative.

Cumulative perpetual future financing rate June 10th. Source: Coinglass

Perpetual contracts reflected mixed attitudes after Bitcoin and Ethereum maintained a slightly positive (bullish) funding ratio, while altcoin rates were negative. For example, a negative 0.20% BNB weekly rate is equivalent to 0.8% per month, which is generally not a concern for derivatives traders.

All recovery depends on the stability of macroeconomic data

According to derivatives and trading indicators, investors are less likely to lower their position at the current level, as evidenced by a modest increase in the Tether premium.

The positive funding ratio for Bitcoin and Ether futures shows the growing appetite of traders for indebted long-term positions where total cryptocurrency financing fell below $ 1.2 trillion.

Unless traditional markets and macroeconomic scenarios worsen, there is reason to believe that cryptocurrency investors expect a positive price change soon.

The views and opinions expressed herein are theirs alone author and do not necessarily reflect the views of Cointelegraph. Every investment and business involves risk. You should do your own research when making a decision.