{"id":544567,"date":"2023-01-28T01:30:00","date_gmt":"2023-01-27T22:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/total-crypto-market-cap-rises-above-1t-and-data-suggests-more-upside-is-in-store\/"},"modified":"2023-01-28T01:30:00","modified_gmt":"2023-01-27T22:30:00","slug":"total-crypto-market-cap-rises-above-1t-and-data-suggests-more-upside-is-in-store","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/total-crypto-market-cap-rises-above-1t-and-data-suggests-more-upside-is-in-store\/","title":{"rendered":"# Total crypto market cap rises above $1T, and data suggests more upside is in store"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a2d41b737111\" 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-6a2d41b737111\" 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\/total-crypto-market-cap-rises-above-1t-and-data-suggests-more-upside-is-in-store\/#%E2%80%9D_Total_crypto_market_cap_rises_above_1T_and_data_suggests_more_upside_is_in_store_%E2%80%9C\" >&#8221; Total crypto market cap rises above $1T, and data suggests more upside is in store &#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\/total-crypto-market-cap-rises-above-1t-and-data-suggests-more-upside-is-in-store\/#Leverage_demand_slightly_favors_bulls\" >Leverage demand slightly favors bulls<\/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\/total-crypto-market-cap-rises-above-1t-and-data-suggests-more-upside-is-in-store\/#The_options_putcall_ratio_shows_no_signs_of_fear\" >The options put\/call ratio shows no signs of fear<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/total-crypto-market-cap-rises-above-1t-and-data-suggests-more-upside-is-in-store\/#Derivatives_markets_point_to_further_upside_potential\" >Derivatives markets point to further upside potential<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Total_crypto_market_cap_rises_above_1T_and_data_suggests_more_upside_is_in_store_%E2%80%9C\"><\/span>&#8221; Total crypto market cap rises above $1T, and data suggests more upside is in store &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Despite the recent negative crypto and macroeconomic <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>flow, the total cryptocurrency market capitalization broke above $1 trillion on Jan. 21. An encouraging sign is that derivatives metrics are not showing increased demand from bearish traders at the moment.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/fa713d40-1a4c-40ca-a572-2f3c5fb24e33.png\"><figcaption style=\"text-align: center;\"><em>Total crypto market cap in USD, 1-day. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Bitcoin (BTC) price gained 8% on the week, stabilizing near the $23,100 level at 18:00 UTC on Jan. 27 as the markets weighed the potential impact of\u00a0Genesis Capital&#8217;s bankruptcy on Jan. 19. <\/p>\n<p>One area of concern is Genesis Capital&#8217;s largest debtor is Digital Currency Group (DCG), which h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens to be its parent company. Consequently, Grayscale funds management could be at risk, so investors are unsure if the Grayscale Bitcoin Trust (GBTC) assets could face liquidation. The investment vehicle currently holds over $14 billion worth of Bitcoin positions for its holders.<\/p>\n<p>A United States appeals court is set to hear the arguments relating to Grayscale Investment&#8217;s lawsuit against the Securities and Exchange Commission (SEC) on March 8. The fund manager questioned the SEC&#8217;s decision to deny their asset-backed exchange-traded fund (ETF) launch.<\/p>\n<p>Regulatory concerns also negatively impacted the markets after South Korean prosecutors requested an arrest warrant for Bithumb exchange owner Kang Jong-Hyun. On Jan. 25, the Financial Investigation 2nd Division of the Seoul Southern District Prosecutor&#8217;s Office sentenced Kang and two Bithumb executives on charges of conducting fraudulent illegal transactions. <\/p>\n<p>The 7% weekly increase in total market capitalization was held back by Ether&#8217;s (ETH) 0.3% negative price move. Still, the bullish sentiment significantly impacted altcoins, with 11 of the top 80 coins gaining 18% or more in the period.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/8de6b7a0-55ac-4142-bb17-e02dbd2d1b94.png\"><figcaption style=\"text-align: center;\"><em>Weekly winners and losers among the top 80 coins. Source: Messari<\/em><\/figcaption><\/figure>\n<p>Aptos (APT) gained 91% after the smart contract network total value locked (TVL) reached a record-high $58 million, fueled by PancakeSwap DEX.<\/p>\n<p>Fantom (FTM) rallied 50% after the announcement of its new database system, Carmen, and a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/theotherpomp\/status\/1618707285752283136\">new Fantom Virtual Machine<\/a>, Tosca.<\/p>\n<p>Optimism (OP) faced 21% gains after a sharp increase in transaction volumes during an NFT incentive program called Optimism Quest.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Leverage_demand_slightly_favors_bulls\"><\/span>Leverage demand slightly favors bulls<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Perpetual contracts, 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\/2023-01\/fdb16ca5-2139-4195-9330-8cf7697c1357.png\"><figcaption style=\"text-align: center;\"><em>Perpetual futures accumulated 7-day funding rate on Jan. 27. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>The 7-day funding rate was positive for Bitcoin and Ethereum, meaning the data points to slightly higher demand for leverage longs (buyers) versus shorts (sellers). Still, a 0.25% weekly funding cost is not enough to discourage leverage buyers.<\/p>\n<p>Interestingly, Aptos was the only exception as the altcoin presented a negative 0.6% weekly funding cost \u2014 meaning short sellers were paying to keep their positions open. This movement can be explained by the 91% rally in 7 days and it suggests that sellers expect some sort of technical correction.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_options_putcall_ratio_shows_no_signs_of_fear\"><\/span>The options put\/call ratio shows no signs of fear<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Traders can gauge the market&#8217;s overall sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>ly speaking, call options are used for bullish strategies, whereas put options are for bearish ones.<\/p>\n<p>A 0.70 put-to-call ratio indicates that put options open interest lag the more bullish calls by 30% and is therefore bullish. In contrast, a 1.40 indicator favors put options by 40%, which can be deemed bearish. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/72c9a7b5-a9c7-4970-ae34-ce28a677045a.png\"><figcaption style=\"text-align: center;\"><em>BTC options volume put-to-call ratio. Source: laevitas.ch<\/em><\/figcaption><\/figure>\n<p>Even though Bitcoin&#8217;s price failed to break the $23,300 resistance, the demand for bullish call options has exceeded the neutral-to-bear puts since Jan. 6. <\/p>\n<p>Presently, the put-to-call volume ratio stands near 0.50 as the options market is more strongly populated by neutral-to-bullish strategies, favoring call (buy) options by 50%.<\/p>\n<p><strong>Related:\u00a0<em>Bitcoin will hit $200K before $70K \u2018bear market\u2019 next cycle \u2014 Forecast<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Derivatives_markets_point_to_further_upside_potential\"><\/span>Derivatives markets point to further upside potential<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After the third consecutive week of gains, which totals 40% year-to-date when excluding stablecoins, there are no signs of demand from short sellers. More importantly, leverage indicators show bulls are not using excessive leverage.<\/p>\n<p>Derivatives markets point to further upside potential and even if the market revisits the $950 billion market capitalization from Jan. 18, there is no reason for panic. Currently, Bitcoin option markets show whales and market makers favoring the neutral-to-bullish strategies. <\/p>\n<p>Ultimately, the odds favor those betting that the $1 trillion total market cap will hold, opening room for further gains.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/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. 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An encouraging sign is that derivatives metrics are not showing increased demand from bearish traders at the moment.\u00a0&#8230;<\/p>\n","protected":false},"author":1,"featured_media":544568,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/962f4ce5-8b7f-4792-9a6c-1a0115018826.JPG","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,138375,74862,81209,74937,75610,74863,74860,75012,82548,95119,74939,75679,92498,73785],"class_list":["post-544567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-aptos","tag-bitcoin","tag-bitcoin-options","tag-bitcoin-price","tag-bithumb","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-gbtc","tag-layer2","tag-market-analysis","tag-market-capitalization","tag-solana","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544567","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=544567"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/544568"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=544567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=544567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=544567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}