WEEKLY CRYPTOCURRENCY MARKET ANALYSIS

CRYPTONAIRE LYWEEK

CRYPTO investment journal

WEEKLY CRYPTOCURRENCY MARKET ANALYSIS

Hello, Crypto Traders welcome to this week’s 173rd edition of Cryptonaire Weekly. The overall Cryptocurrency Market Cap stands at $1.68 Trillion. We have seen a $20 Billion increase in the Market Cap since the last week. Bitcoin price is currently around $54,050 from $53,850 since last week and has increased by 0.37% and Ether price is now at $1,755 from $1,850 since last week and has decreased by 5.14%. The current market cap for bitcoin is $1 Trillion, and for Altcoins, the current market cap is $680 Billion.

Bitcoin hit a new all-time high in the last week as it soared above $60,000. This could have attracted aggressive short-term traders who may have expected the next leg of the uptrend to begin.

In anticipation of a rally, many retail traders seem to have used derivatives to build positions, which led to the funding rates on bitcoin perpetual futures rising to 200% on an annualized basis, which is unsustainable, according to Singapore-based quant firm QCP Capital.

When using leverage, even small adverse movements in the price can result in large drawdowns and margin shortfalls. This could be one of the reasons for the massive liquidation of derivatives positions to the tune of about $1.83 billion within a 24-hour period.

Even in the spot markets, Glassnode data shows that the influx of retail clients has reached record highs. Recently, data compiled by JPMorgan Chase has also shown that retail Bitcoin purchases have surpassed that from institutional investors in the first quarter of this year. A survey conducted by Mizuho showed that about $40 billion of the $380 billion in stimulus checks to Americans could find its way into Bitcoin and stocks. About 61% of the respondents said they will be investing their money in Bitcoin. This shows that the retail crowd will continue to pump money into crypto assets. Usually, the retail crowd is notorious for entering in the last stages of the bull phase. Therefore, traders should be careful in the next few days as the professional traders could use the retail mania to offload their positions and cause a correction. Percentage of Total Market Capitalization (Dominance)