The total crypto market capitalization dipped below $1.2 trillion, but the data shows that traders are less inclined to sell. The improved Tether discount in Asian markets and the positive futures premium of Bitcoin price and ETH suggest a slight rally is underway. At the time of writing, BTC is changing hands at $27,236.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price and altcoins fell deeply
The total crypto market capitalization has been steadily declining over the past 29 days and currently supports $1.17 trillion. Over the past 7 days, Bitcoin has dropped slightly by 7%, and Ether faces a 14% correction.
The June 10 Consumer Price Index (CPI) report shows an 8.6% year-on-year increase, and the stock and crypto markets immediately felt the impact. Still, it is uncertain whether This number will convince the US Federal Reserve to hesitate in raising interest rates in the future.
Mid-cap altcoins fall. Further, sentiment is still bearish. The overall bearish sentiment caused by weak macroeconomic data and uncertainties related to the Federal Reserve’s ability to contain inflation has severely affected the cryptocurrency market.
The Fear and Greed Index hit 11/100 on June 9, and the data-driven sentiment gauge has been below 20 since May 8. This persistent “Extreme fear” just shows that investors are nervous, but at the same time, it is said to create buying opportunities.
According to trading and derivatives indices, investors are less inclined to reduce their positions at current levels, as shown by the modest improvement in the Tether premium. The positive funding rate for Bitcoin and Ether futures shows a growing appetite among traders for leveraged long positions, as the total crypto cap has broken down to $1,2 trillion.
Unless the traditional markets and macroeconomic scenarios deteriorate, there is reason to believe that crypto investors are expecting a positive price move soon.
Read more:
- Bitcoin Price Could Approach Lower Support At $25,000 -$27,000 With Greater Price Volatility
- Bitcoin Price And Most Major Altcoins Spent Much Of Today In The Red