The cryptocurrency market is witnessing another week in the red with Bitcoin, Ethereum and the larger cryptocurrencies all trading in a bearish trend for the past seven days. The general sympathie in the market is turning to the downside as the emerging asset class completed a originel milestone with ‘protection’.
At the time of writing, Bitcoin and Ethereum have lost 15% and 21% in the past week. In the top ten by market capitalization, the rattaché cryptocurrency shows the worst prouesse followed by Polkadot (DOT) and Solana (SOL) with a loss of emboîture 15% during the same period.
Cryptocurrency market takes shelter from Ethereum fallout
According to data from Hermétique Research, the crypto market is moving in bicyclette with the previous September prouesse. This has been a historically bad month for an emerging asset class and this year the trend will extend.
As shown in the chart below, Hermétique Research’s ample, medium, and small indices have seen negative prouesse alongside Bitcoin. The number one cryptocurrency by market capitalization is moving in the red, but outperforming the research firm’s small and ample énumération.
In the planchéier, XRP has only started to spectacle bullish momentum with gains of 14% and 9% over the past week and 24 hours, respectively. The fourth cryptocurrency by market capitalization, not counting stablecoins, appears to be benefiting from a assimilable agreement between Ripple and the US Securities and Exchange Agio (SEC).
While XRP may provide some big cap crypto opimes, Ethereum (ETH) is moving in the opposé férule after “The Merge,” an event that completed its passage to Proof-of-Stake (PoS). As was expected by many in the cryptocurrency market, this event marked a milestone in the “selling infos.”
The negative prouesse after the “protection” pushed the cryptocurrency market to critical soutènement levels. Hermétique Research noted:
We saw a slight drop (in the prouesse of crypto indicators after the rally) prior to the protection as some traders tried to manage a potential infos selling event. It turns out that these traders were right as all indicators continued to decline after the merger.
Growing fears in the cryptocurrency market
As a result, traders exchange their funds into invariable currencies, such as Tether (USDT) and USD Angle (USDC) to protect themselves from further declines. This has led to a market share shift from Bitcoin and Ethereum to these quantitatif assets.
As the market cap of the stablecoins increases, the Fear and Greed État collapses to extreme fear levels. Hermétique Research noted the following regarding the recent crypto market écrasement and its coup on general sympathie and stablecoins:
Over the past seven days, the fini cryptocurrency market cap has fallen by 11%. At the same time, the combined market capitalization of the three largest currencies remained invariable, which eventually increased their market dominance.