Key Takeaways
- In one single week, the entire crypto market capitalization plummeted by 6.9%.
- Interestingly, the derivatives metrics depict an escalating demand for bearish bets.
In one single week, the entire crypto market capitalization plummeted by 6.9%. Interestingly, the derivatives metrics depict an escalating demand for bearish bets. From a bearish endpoint, on the 15th of August 2022, there's an average chance that the crypto market plunged into a collapsing wedge after it could not surpass the $1.2 trillion total market capitalization resistance. The previous weeks have not shown any sign of positivity, regardless of the indistinguishability of the pattern.
What Is Binance Smart Chain (BSC)?
The total crypto market cap continues to crumble as the dollar index hits a 20 year high
The total crypto market cap continues to crumble as the dollar index hits a 20-year high. For instance, let's take a look at the recent record market capitalization. The $940 billion total market cap recorded on the 29th of August was the lowest that has ever been recorded in 43 days. The conditions have further deteriorated and have been partnered by an abrupt rectification in traditional markets, and the tech-inclined Nasdaq Composite Index has diminished by 12% since August 15. Together with this, WTI oil prices suffered a declination in prices by 11% from Aug. 29 to Sept. 1.
Investors have begun to scramble for several solutions. Just recently, Federal Reserve Chair Jerome Powell restated that the bank is fully committed and responsive to the control and stabilization of inflation via strengthening the economy. Because of this, investors have begun to chase and find asylum in U.S. treasures and dollars. Investors placed profits on risky assets owing to the statement of the Federal Reserve Chair, Jerome Powell.
Yesterday, the U.S Dollar Index (DXY) attained its all-time high across two decades at 109.6 The index gauges the dollar's power relative to a selection of the most valuable foreign currencies. More crucially, the regulatory news flow is still largely negative, particularly after U.S. federal authorities asked Binance for internal documents so they could investigate potential money laundering and the solicitation of American users. According to Reuters, authorities have been investigating whether Binance broke the Bank Secrecy Act since late 2020. What are your thoughts? Let us know in the comment section below.
