Advertisement
AD

Main navigation

Crypto Market Hits 1 Trillion in Cap Again with Stablecoin Share Falling; Up Trend?

Advertisement
Tue, 19/07/2022 - 16:14
Crypto Market Hits 1 Trillion in Cap Again with Stablecoin Share Falling; Up Trend?
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Despite the risk of severe economic turmoil and quite negative sentiment just a week ago, the crypto market has managed to climb back up to the $1 trillion mark in total capitalization — to where it has not been since June 13 — when the latest to date capitulation occurred. But although the crypto market cap is back above this important psychological level, the market itself seems to be at a crossroads.

Advertisement

The fewer stabelcoins, the better

A graph presented by Blockware analyst Will Clemente can help us understand the nature of what is happening. The chart, which the analyst calls compelling, shows a pattern whereby when the share of stablecoins in the total market capitalization decreases, the Bitcoin price rises. On the contrary, when there are a large number of stablecoins deployed on the market, but no buyers left, Bitcoin's price falls.

Clemente explains this pattern by saying that, in the first case, participants are forced to chase the upward rally, while in the second case, on the contrary, a lack of buyers drags the price down. The logic of the chart is simple and obvious, but it is its graphical representation that is important and reflects well the pattern suggested by Clemente.

Reviewing the chart offered by Clemente, one can see that the market has "unraveled," with the number of stablecoins declining in recent weeks, and Bitcoin, which is now in a small accumulation stage, standing at a crossroads. The current situation most closely resembles that of mid-2020 due to the chart, but it is worth considering the Corona Crisis at the time. However, if the pattern is correct, then in the near future, we can expect upward movement on Bitcoin.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD