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Cryptocurrencies have failed to break through the $1.1 trillion market cap resistance that has remained strong for the past 54 days. The two leading coins held back the market as Bitcoin (BTC) lost 2.5% and Ether (ETH) slipped 1% over the past seven days, but a handful of altcoins rallied robustly.

The total capitalization of the crypto markets fell by 1% between July 29 and August 5 to $1.07 trillion. The market was negatively impacted by reports on Aug. 4 that the U.S. Securities and Exchange Commission (SEC) is investigating every U.S. crypto exchange after the regulator charged the fee. a former Coinbase employee with insider trading.

Total crypto market cap, USD billions. Source: TradingView

While the two leading cryptoassets failed to squeeze weekly gains, traders’ appetites for altcoins were unaffected. Investors were positively impacted by the Coinbase exchange partnership with BlackRock, the world’s largest financial asset manager, responsible for $10 trillion in investments.

Coinbase Prime, the service offered to BlackRock’s clients, is an institutional trading solution that provides trading, custody, financing and staking on over 300 digital assets. Consequently, comparing the winners and losers among the top-80 coins produces skewed results, as 10 of those have risen 12% or more in the past seven days:

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

FLOW rose 48% after Instagram announced support for the Flow blockchain via Dapper Wallet. The social network operated by Meta (formerly Facebook) extends non-replaceable token integration.

Filecoin (FIL) gained 38% after the v16 Skyr upgrade on August 2, which hardened the protocol to prevent vulnerabilities.

VeChain (VET) gained 16.5% after some news sources falsely announced an Amazon Web Services (AWS) partnership. VeChain Foundation explained that the AWS reference was first cited in a May 9 case study.

Tether premium has deteriorated slightly

The OKX Tether (USDT) premium is a good gauge of demand from crypto retailers in China. It measures the difference between China-based peer-to-peer transactions and the US dollar.

Excessive buying demand tends to pressure the indicator above fair value by 100%, and during bearish markets, Tether’s market supply is flooded, causing a discount of 4% or more.

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

Currently, the Tether premium stands at 98.4%, the lowest level since June 10. While the indicator is a long way from retail panic selling, the indicator deteriorated modestly over the past week.

The weaker retail demand is not a cause for concern, however, as it partly reflects that total cryptocurrency capitalization has fallen by 69% to date.

Futures Markets Show Mixed Sentiment

Perpetual contracts, also known as inverse swaps, have an embedded rate that is usually charged every eight hours. Exchanges use this fee to avoid imbalances in exchange rate risk.

A positive funding ratio indicates that longs (buyers) require more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, making the funding rate negative.

Accumulated perpetual financing rate for futures on August 5. Source: Coinglass

As shown above, the accumulated seven-day funding rate is either slightly positive or neutral for the largest cryptocurrencies due to open interest. Such data indicates a balanced demand between leveraged longs (buyers) and shorts (sellers).

Given the absence of Tether demand in Asia and mixed perpetual contract premiums, there is a lack of confidence from traders as total crypto capitalization struggles with the $1.1 trillion resistance. So at the moment bears seem to have the upper hand, given the uncertainties caused by the SEC filing a lawsuit against a former Coinbase executive.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of UKTN. Every investment and trading move involves risks. You should do your own research when making a decision.



2 Stats Indicate The $1.1T Crypto Market Capitalization Resistance Will Continue – UK Time News

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