The overall market capitalization of all 5,700+ cryptocurrencies in existence lost around $10 billion during the overnight trading sessions. Most crypto assets have lost 2-5% in value during the last 12 hours, and a number of speculators blame the recent Twitter hack.
The price of bitcoin (BTC) and a number of other digital assets worldwide slumped in value, a few hours after the massive Twitter breach that took place on Wednesday. Since the incident, the overall valuation of all the coins in existence has lost roughly $10 billion and most of the top coins are down a few percentages. At the time of publication, the market capitalization for every coin market is hovering just above the $270 billion range losing 1.47% during the last 24 hours.
Bitcoin (BTC) is swapping for $9,083 per coin and the market is down 1.56% today. The second-largest market ethereum (ETH) has lost over 3% and each ETH is trading for $232. The stablecoin tether (USDT) is capturing more than two-thirds of the global trades today with nearly every coin as a pair. The USDT market valuation is hovering around $9.64 billion on Thursday and there’s roughly $5.9 billion in global trade volume.
Behind USDT, is XRP and each token is currently trading for $0.19 per coin. XRP has lost over 3.6% during the last 24 hours. Bitcoin cash (BCH) holds the fifth position as far as market valuation is concerned. BCH is swapping for $221 per coin and markets are down over 2.9%. USDT/BCH trades are hovering just above the 58% zone, while BTC is capturing 21% of all bitcoin cash swaps. This is followed by KRW (4.88%), USD (4.82%), GBP (2.74%), ETH (1.41%), and EUR (1.07%).
Selling Pressure and Bitcoin Options
According to a recent tweet from the popular Twitter account @cl207, the range of bid and asks (sellers) is at a “multi-month high.” On July 15, cl207 told his 9,800 Twitter followers: “3% range bids/asks shows that the amount of asks on Bitmex is at a Bitmex multi-month high.” Essentially, it means the price of bitcoin (BTC) has a great number of sell orders to eat through in order to break upper resistance. He added:
Eat through approximately $150,000,000 of sell orders to and we won’t even be at $9,400.
Additionally, data from the market research firm Skew.com indicates that BTC options show traders are expecting a temporary dip. Data from the web portal shows that bitcoin options, specifically one-month put-calls, are leaning toward a bearish downswing in price. On Twitter Skew wrote: “Bitcoin options term structure is record steep. Market pricing-in a quiet summer.” The research team’s official Twitter account also tweeted:
Yesterday is the first day on our record where Okex USDT-margined bitcoin futures had more volumes than BTC-margined bitcoin futures. The shift towards stable coin margining is a big story for crypto markets this year.
Stablecoin Madness
Stablecoins have been extremely popular during the last two years, and the current supply recently crossed $12 billion in value, according to a recent tweet from the cryptocurrency analysis firm Unfolded. Sharing data from the company Coin Metrics, the Unfolded researchers highlighted a quote from a recent Coin Metrics report: “After it took five years for stablecoin supply to reach $6 billion, it only took another four months for it to grow from $6 billion to $12 billion following the March 12th crypto crash.”
Bitstamp and Coin Metrics published a report recently called “The Rise of Stablecoins,” which highlights that tether (USDT) captures a great majority of the $12 billion aggregate stablecoin valuation.
“As crypto matures, stablecoins will mature as well,” the researchers wrote. “If crypto assets are eventually used at a large scale for purposes like international payments and global remittances, stablecoins are a natural candidate for a true crypto medium of exchange.”
Traders Expect a Bitcoin Price Dip Due to Exchange Inflow Metrics
Data from the research and analysis company Cryptoquant and the popular full-time crypto trader on Twitter with 40,000 followers, “Traderxo” (@pandilladeflujo), shows that the price of BTC may see a temporary drop below the $9k range.
Cryptoquant notes that a “small” retracement may take place due to the spike in exchange inflows, which means a great number of traders are depositing coins to possibly sell. Traderxo noted the trend on July 15 when he tweeted:
Inflows showing constant spikes – and some decent amounts being sent to derivatives exchanges. Yet outflows remain relatively flat. Something, something on derivatives while something, something on spot exchanges. Its been a consistent pattern for the last several weeks.
What do you think about the recent cryptocurrency prices on July 16? Let us know what you think in the comments section below.
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