This week’s fallout from regulatory action and rumors hasn’t been strong enough to dampen investor appetite for cryptocurrencies.
Total cryptocurrency market capitalization on February 16. amounted to $1.13 trillion, but the structure of the month-long ascending channel did not change. More importantly, this level in 2023 will increase by 43%, a far cry from the $3 trillion level reached in 2021. in November. Again, the current recovery is significant.
As mentioned above, the uptrend in the channel that began in mid-January has broken down to $1 trillion without breaking the bull pattern, leaving some room for a 10% correction.
Investors responded positively to a 5.6% year-over-year increase in US consumer price inflation on February 14. and monthly retail sales growth of 3% on February 15. Bitcoin
This had the biggest positive impact on the overall cryptocurrency capitalization as its price increased by 12.5% over the week.
One area of concern is a story published on Binance on February 16. US financial operations with Merit Peak, a trading company led by CEO Changpeng Zhao. Interestingly, Reuters reports that a spokesperson for Binance.US said that Merit Peak “does not trade or provide any services on the Binance.US platform.”
A 10.1% weekly increase in total market capitalization was offset by a modest 1.8% increase in BNB.
2.5% price increase. On the other hand, only three of the top 80 cryptocurrencies ended the week in the negative.
Decentralized storage solution Filecoin
59% and computer internet
grew by 52% as demand on the Bitcoin blockchain to subscribe to a non-volatile token (NFT) greatly increased block space.
GMX rose 34% as the protocol generated 5 million in one day. USD transaction fees.
Lido DAO’s LDO Up 34% As Stakers Evaluate Bids To Control 20,300 Ether
held by the Treasury.
Despite overall growth, demand for leverage is balanced.
Perpetual contracts, known as reverse swaps, typically have an embedded rate that is paid every eight hours. Exchanges use this fee to hedge against currency exchange risk imbalances.
A positive funding ratio indicates that long buyers (buyers) need more leverage. However, the opposite occurs when shorts (sellers) seek additional leverage, resulting in a negative funding rate.
The 7-day funding rate for Bitcoin and Ether was close to zero, meaning the data shows balanced demand between weighted longs (buyers) and shorts (sellers).
Interestingly, BNB is no longer among the top six cryptocurrencies based on future open interest due to investor demand in Polygon’s MATIC
Markets rose 70% in February.
The put/call ratio of options remains promising
Traders can gauge overall market sentiment by assessing whether there is more activity in call (buy) or put (sell) options. Call options are generally used for bullish strategies and put options for betting strategies.
A put-to-call ratio of 0.70 shows that put open interest has remained at 30% of most grand calls, making them high. Conversely, the 1.40 indicator favors put options by 40%, which can be considered bearish.
Related: Bitcoin price pullback looks a little overheated, but data suggests fewer bears
Although the price of bitcoin failed to break the $25,000 resistance, since February 14. demand for extended call options exceeded neutral and declined.
Currently, the put-to-call ratio is close to 0.40, as the options market is mostly filled with neutral growth strategies that favor calls (calls) 2x.
From a derivatives market perspective, there are signs of demand from short sellers and leverage indicators suggest that bulls are not over-leveraged. Ultimately, the odds are in favor of those who believe the $1.13 trillion total market cap will break resistance and open up room for further gains.