Bybit exchange has released a new attentisme on the current trends in the crypto market.
New Bybit Exchange Prorogation on Crypto Market Trends
What are the new trends in the cryptocurrency market and how is the market doing after going through one of the most difficult times in its entire history? These are some of the questions addressed in Bybit and Nansen new report On the state of the cryptocurrency industry.
One of the first aspects that the attentisme addresses is the drastic analysis of the massive loss of capitalization, in the order of 67% in the past seven months, due to significant declines in the market, which has seen all cryptocurrencies plummet in value. The highest level in November by 60 to 80% of its value.
At the beginning of the attentisme it was stated that:
“During the broader market sell-off in June, Bitcoin pulled back as stablecoin market share solitaire. This likely indicates that the journey to safety is over, and the market has officially entered a démission degré.”
The month of June shows how the Fear & Greed Glossaire indicated a clairvoyance of compact fear in the market. In early July, the glossaire reached its lowest level since September 2019, before rebounding slightly in the following days, although its level is still very low, given the difficult economic conditions that also affects the cryptocurrency markets, which seem to be increasingly tracking Connecting to traditional marketsespecially technology stocks on the Nasdaq Réserve Exchange.
Bybit and Nansen experts explain:
The 30D correlation between stocks and BTC broke off to 0.5 in July for the first time since March of this year, but resumed to a high in August. With the Nasdaq 100 rebounding 19% from its lows at the time of writing, a progrès is likely in the short-term future, indirectly forming headwinds for the cryptocurrency.
Factors affecting the fortune of the cryptocurrency market
According to experts who wrote the attentisme, the recovery in July and August was driven by futures and options, while flash trading imprimé appears to have been somewhat choppy. The other visage highlighted in the attentisme is the upcoming heurt update merge As for the Ethereum blockchain, which is expected to have a strong heurt on the entire cryptocurrency market.
Then the experts continue:
“Most Ether options expired in September, revealing that most trades appeared to bet on The Merge and could turn a prérogative any time before the highly anticipated upgrade event.”
Another factor that attracts the concentration of many investors is that it is rooted in the stablecoin market, which has been hit hard by the failure of the Terra ecosystem and the stability of the terrestrial treasury algorithm, which has rocked the entire industry for several days. The recent stablecoin moves and technical indicators seem to indicate Market trend shift.
August saw stronger outflows ($1 billion) than inflows ($2.1 billion and $1.4 billion in June and July, respectively) for the first time since May. A shift from inflows to outflows can indicate an early sign of a shift in which pécule may return to DeFi space of the premier exchanges after the pécule flight in the past three months.
NFT sector fortune
Then the attentisme goes to state NFT . Market, which slowed sharply after the 2021 scandale in the first eight months of 2022. The decline in NFTs is still very high in August. While the market is bearish, NFT has underperformed Ether in YTD dollars for the first time this year. Due to the collapse in NFT valeur-limite prices, the market has seen a decrease in the number of first time buyers while the number of returning buyers remains high.
The attentisme then specifically looks at the relationship that has occurred between the NFT market and the fortune of Bitcoin and Ethereum:
“Following a recent broader price progrès, NFT correlations with BTC have spiked in terms of both Ether and the dollar. The recurring modèle where NFT correlations with BTC rise when Bitcoin is down and fall when price bounces or is range bound also confirms what we covered in the previous month’s attentisme, That NFTs are not a good hedge against Bitcoin.”