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Data shows Bitcoin and altcoins at risk of a 20% drop to new yearly lows

Published 08/22/2022, 04:35 PM
Updated 08/22/2022, 06:20 PM
Data shows Bitcoin and altcoins at risk of a 20% drop to new yearly lows
USD/CNY
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USDT/USD
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After the rising wedge formation was broken on Aug. 17, the total crypto market capitalization quickly dropped to $1 trillion and the bulls' dream of recouping the $1.2 trillion support, last seen on June 10, became even more distant.

Total crypto market cap, USD billion. Source: TradingView

The worsening conditions are not exclusive to crypto markets. The price of WTI oil ceded 3.6% on Aug. 22, down 28% from the $122 peak seen on June 8. The United StatesTreasuries 5-year yield, which bottomed on Aug. 1 at 2.61%, reverted the trend and is now trading at 3.16%. These are all signs that investors are feeling less confident about the central bank's policies of requesting more money to hold those debt instruments.

Crypto Fear & Greed Index. Source: Alternative.me
Weekly winners and losers among the top-80 coins. Source: Nomics
Tether (USDT) peer-to-peer vs. USD/CNY. Source: OKX
Accumulated perpetual futures funding rate on Aug. 22. Source: Coinglass

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