{"id":497980,"date":"2022-10-03T20:30:00","date_gmt":"2022-10-03T17:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/upside-capped-at-980b-total-crypto-market-according-to-derivatives-metrics\/"},"modified":"2022-10-03T20:30:00","modified_gmt":"2022-10-03T17:30:00","slug":"upside-capped-at-980b-total-crypto-market-according-to-derivatives-metrics","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/upside-capped-at-980b-total-crypto-market-according-to-derivatives-metrics\/","title":{"rendered":"# Upside capped at $980B total crypto market, according to derivatives metrics"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4f6d34c54b6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4f6d34c54b6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/upside-capped-at-980b-total-crypto-market-according-to-derivatives-metrics\/#%E2%80%9D_Upside_capped_at_980B_total_crypto_market_according_to_derivatives_metrics_%E2%80%9C\" >&#8221; Upside capped at $980B total crypto market, according to derivatives metrics &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/upside-capped-at-980b-total-crypto-market-according-to-derivatives-metrics\/#Conflicting_macroeconomic_signals_limit_risk_market_upside\" >Conflicting macroeconomic signals limit risk market upside<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/upside-capped-at-980b-total-crypto-market-according-to-derivatives-metrics\/#Derivatives_markets_point_to_further_downside\" >Derivatives markets point to further downside<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Upside_capped_at_980B_total_crypto_market_according_to_derivatives_metrics_%E2%80%9C\"><\/span>&#8221; Upside capped at $980B total crypto market, according to derivatives metrics &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-6ebd806f>It is becoming increasingly challenging to support a bullish short-term view for cryptocurrencies as the total crypto market capitalization has been below $1.4 trillion for the past 146 days. Furthermore, a descending channel initiated in late July has limited the upside after two strong rejections.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/29bfa56e-a5bd-456d-a1be-005c13d7bd75.png\"><figcaption style=\"text-align: center;\"><em>Total crypto market cap, USD. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The 1% weekly negative performance in cryptocurrency markets was accompanied by stagnation in the S&amp;P 500 stock market index, which remained basically flat at 3,650. Uncertainty continues to limit the eventual recovery as worsening global economic conditions have caused trans-Pacific <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/cargo-shipowners-cancel-sailings-as-global-trade-flips-from-backlogs-to-empty-containers-11664681947?siteid=yhoof2\">shipping rates<\/a> to plunge 75% versus the previous year, forcing ocean carriers to cancel dozens of sailings.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conflicting_macroeconomic_signals_limit_risk_market_upside\"><\/span>Conflicting macroeconomic signals limit risk market upside<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From one side, the global macroeconomic scenario improved after the United Kingdom&#8217;s government reverted plans to cut income taxes on Oct. 3. On the other hand, investors&#8217; fear increased as global investment bank Credit Suisse&#8217;s credit default swaps reached their highest level on Oct. 3. Such instruments allow investors to protect against default, and their cost surpassed levels seen at the height of the 2008 financial crisis.<\/p>\n<p>Below is a list of the winners and losers of the crypto market capitalization&#8217;s 1% <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nomics.com\/\">loss<\/a> to $935 billion. Bitcoin (BTC) stood out with a 1% gain, which led its dominance rate to hit 41.5%, the highest since Aug. 5.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/7626a3f3-c9a9-4084-a542-bf507056c8af.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Weekly winners and losers among the top-80 coins. Source: <\/em><em>Nomics<\/em><\/figcaption><\/figure>\n<p>Quant (QNT) jumped 15% on speculation that its interoperable blockchain protocol would find adoption across governmental and regulatory bodies.<\/p>\n<p>Maker (MKR) gained 10.6% after MakerDAO launched a proposal to decrease the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MakerDAO\/status\/1575832812921430018\">stability fee<\/a> for the Curve protocol staked Ether (ETH) pool.<\/p>\n<p>UniSwap Protocol (UNI) gained 10.6% after UniSwap Labs, a startup contributing to the protocol, reportedly raised over $100 million from venture capitalists.<\/p>\n<p>Still, a single week of negative performance is not enough to interpret how professional traders are positioned. Those interested in tracking whales and market markers should analyze derivatives markets. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Derivatives_markets_point_to_further_downside\"><\/span>Derivatives markets point to further downside<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For instance, perpetual futures, also known as inverse swaps, have an embedded rate usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.<\/p>\n<p>A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/f05d1dbe-2aa8-41e3-8ca4-621d5ff2d8d1.png\"><figcaption style=\"text-align: center;\"><em>Accumulated 7-day perpetual futures funding rate on Oct. 3. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>Perpetual contracts reflected neutral sentiment as the accumulated funding rate was relatively flat in most cases over the past seven days. The only exception was Ether Classic (ETC), although a 0.50% weekly cost to maintain a short (bear) position should not be deemed relevant. <\/p>\n<p>Since Sept. 26, the yields on the U.S. Treasury&#8217;s 5-year notes declined from 4.2% to 3.83%, indicating investors are demanding fewer returns to hold extremely safe assets. The flight-to-quality movement shows how risk-averse traders are as mixed sentiment emerges from lackluster economic indicators and corporate earnings.<\/p>\n<p>For this reason, bears believe that the prevailing longer-term descending formation will continue in the upcoming weeks. In addition, professional traders&#8217; lack of interest in leveraging cryptocurrency longs (buys) is evident in the neutral futures funding rate. Consequently, the current $980 billion market capitalization resistance should remain strong.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/upside-capped-at-980b-total-crypto-market-according-to-derivatives-metrics\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Upside capped at $980B total crypto market, according to derivatives metrics &#8220; It is becoming increasingly challenging to support a bullish short-term view for cryptocurrencies as the total crypto market capitalization has been below $1.4 trillion for the past 146 days. Furthermore, a descending channel initiated in late July has limited the upside after&#8230;<\/p>\n","protected":false},"author":1,"featured_media":497981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvOWEyYWUwNjktNmE3Yi00MmQ5LTllODAtMWM5NzFlNzI2NzlmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,75012,75499,75719,73785,80348,4966],"class_list":["post-497980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-derivatives","tag-ethereum-classic","tag-funding","tag-markets","tag-sp-500","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/497980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=497980"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/497980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/497981"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=497980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=497980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=497980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}