{"id":1535,"date":"2022-11-14T10:25:40","date_gmt":"2022-11-14T10:25:40","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=1535"},"modified":"2023-04-03T12:00:07","modified_gmt":"2023-04-03T12:00:07","slug":"crypto-market-cap-drops-to-850b-further-downside","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/crypto-market-cap-drops-to-850b-further-downside","title":{"rendered":"Total Crypto Market Cap Drops to $850B as Data Suggests Further Downside"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-market-cap-drops-to-850b-further-downside\/#Drop_in_Crypto_Market_Cap\" title=\"Drop in Crypto Market Cap\">Drop in Crypto Market Cap<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-market-cap-drops-to-850b-further-downside\/#The_Demand_for_Stablecoins_in_Asia_Remained_Neutral\" title=\"The Demand for Stablecoins in Asia Remained Neutral\">The Demand for Stablecoins in Asia Remained Neutral<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-market-cap-drops-to-850b-further-downside\/#Futures_Markets_Are_Not_Used_Much_by_Leveraged_Buyers\" title=\"Futures Markets Are Not Used Much by Leveraged Buyers\">Futures Markets Are Not Used Much by Leveraged Buyers<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-market-cap-drops-to-850b-further-downside\/#Putcall_Ratios_Indicate_Deteriorating_Sentiment\" title=\"Put\/call Ratios Indicate Deteriorating Sentiment\">Put\/call Ratios Indicate Deteriorating Sentiment<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Even though the crypto market rebounded 11% from the Nov. 9 low, a few metrics suggest investors are still fearful.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Between Nov. 8 and Nov. 10, the <\/span><a href=\"https:\/\/digitalcoinprice.com\/\"><b>cryptocurrency market capitalization<\/b><\/a><span style=\"font-weight: 400;\"> decreased by 24% to $770 billion. A 16% recovery followed after the immediate panic subsided and futures liquidations stopped pressuring asset prices.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1536 size-full\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_02_24_869Z.png\" alt=\"\" width=\"1175\" height=\"634\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_02_24_869Z.png 1175w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_02_24_869Z-300x162.png 300w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_02_24_869Z-1024x553.png 1024w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_02_24_869Z-768x414.png 768w\" sizes=\"auto, (max-width: 1175px) 100vw, 1175px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Drop_in_Crypto_Market_Cap\"><\/span>Drop in Crypto Market Cap<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As the market dropped below $850 billion market capitalization this week, it was not the market&#8217;s first dip below that level; similar dips also occurred in June and July. On Nov. 9, $770 billion was the lowest intraday bottom since December 2020, but support displayed strength in both cases.<\/span><\/p>\n<p><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\"><b>Bitcoin&#8217;s<\/b><\/a><span style=\"font-weight: 400;\"> 18.3% loss and Ether&#8217;s 22.6% price decline contributed the most to the 17.6% drop in total market capitalization. Despite this, altcoins suffered the most, with 8 of the top 80 falling by at least 30% during the period.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1537 size-full\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_02_596Z.png\" alt=\"\" width=\"1064\" height=\"671\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_02_596Z.png 1064w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_02_596Z-300x189.png 300w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_02_596Z-1024x646.png 1024w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_02_596Z-768x484.png 768w\" sizes=\"auto, (max-width: 1064px) 100vw, 1064px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As a result of the insolvency of Alameda Research and the FTX exchange, <\/span><a href=\"https:\/\/www.coindesk.com\/markets\/2022\/11\/11\/solana-volatility-returns-after-ftx-bankruptcy-but-what-comes-next\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>FTX Token and Solana were severely affected by liquidation<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After clearing the air of rumors that FTX was holding Aptos Foundation or Aptos Lab&#8217;s treasures, <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/aptos\"><span style=\"font-weight: 400;\">Aptos (APT)<\/span><\/a><span style=\"font-weight: 400;\"> shares dropped 33%.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Demand_for_Stablecoins_in_Asia_Remained_Neutral\"><\/span>The Demand for Stablecoins in Asia Remained Neutral<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">China-based crypto retail trader demand can be gauged by the USD Coin premium. <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/p\/peertopeer-p2p-economy.asp#:~:text=A%20peer%2Dto%2Dpeer%20(P2P)%20economy%20is%20a,incorporated%20entity%20or%20business%20firm.\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Peer-to-peer transactions<\/span><\/a><span style=\"font-weight: 400;\"> in China are measured against the dollar.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1538 size-full\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_13_695Z.png\" alt=\"\" width=\"1081\" height=\"518\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_13_695Z.png 1081w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_13_695Z-300x144.png 300w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_13_695Z-1024x491.png 1024w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_13_695Z-768x368.png 768w\" sizes=\"auto, (max-width: 1081px) 100vw, 1081px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">According to the USDC premium, it is currently trading at 100.8%, the same as last week. Asian retail investors did not panic sell despite a 24% drop in <\/span><span style=\"font-weight: 400;\">crypto market capitalization<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The USDC buying pressure, however, should not be interpreted as bullish, as it indicates traders are looking for shelter in stablecoins.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Futures_Markets_Are_Not_Used_Much_by_Leveraged_Buyers\"><\/span>Futures Markets Are Not Used Much by Leveraged Buyers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is typically charged every eight hours for <\/span><a href=\"https:\/\/academy.binance.com\/en\/articles\/what-are-perpetual-futures-contracts\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">perpetual contracts<\/span><\/a><span style=\"font-weight: 400;\">, also referred to as inverse swaps. To prevent exchange rate imbalances, exchanges charge this fee.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors who demand more leverage have a positive funding rate. In contrast, negative funding rates are caused by shorts (sellers) who require more leverage.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1539 size-full\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_19_087Z.png\" alt=\"\" width=\"962\" height=\"554\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_19_087Z.png 962w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_19_087Z-300x173.png 300w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_19_087Z-768x442.png 768w\" sizes=\"auto, (max-width: 962px) 100vw, 962px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">For the two largest cryptocurrencies, the 7-day funding rate is slightly negative and data indicates that shorts (sellers) are in oversupply. The cost of maintaining open positions is 0.40% per week, but it is not concerning.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, traders need to evaluate the options market to find out whether whales and arbitrage desks are betting more on bearish or bullish strategies.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Putcall_Ratios_Indicate_Deteriorating_Sentiment\"><\/span>Put\/call Ratios Indicate Deteriorating Sentiment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Trading activity through call (buy) or put (sell) options can give traders a sense of the overall sentiment of the market. Bullish strategies typically use call options, whereas bearish strategies use put options.<\/span><\/p>\n<figure id=\"attachment_1540\" aria-describedby=\"caption-attachment-1540\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1540 size-large\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_31_356Z-1024x518.png\" alt=\"\" width=\"640\" height=\"324\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_31_356Z-1024x518.png 1024w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_31_356Z-300x152.png 300w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_31_356Z-768x389.png 768w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2022\/11\/image_2022_11_14T10_03_31_356Z.png 1063w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-1540\" class=\"wp-caption-text\">Cryptorank.io<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">An <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/o\/openinterest.asp\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">open interest<\/span><\/a><span style=\"font-weight: 400;\"> ratio of 0.70 signifies that put options are more bullish than calls by 30%. Bearishness can be deemed when an indicator of 1.20 shows a 20% favorable sentiment toward put options.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors rushed to seek downside protection after Bitcoin&#8217;s price dropped below $18,500 on Nov. 8. This resulted in an increase in put-to-call ratios to 0.65. However, the current 0.63 level indicates that neutral-to-bearish strategies dominate the Bitcoin options market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When combined with skewed perpetual contract premiums and the absence of stablecoin demand in Asia, traders become less confident that the $850 billion market capitalization support will endure shortly.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Even though the crypto market rebounded 11% from the Nov. 9 low, a few metrics suggest investors are still fearful. Between Nov. 8 and Nov. 10, the cryptocurrency market capitalization decreased by 24% to $770 billion. A 16% recovery followed after the immediate panic subsided and futures liquidations stopped pressuring asset prices. &nbsp; Drop in [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":1541,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,18],"tags":[],"class_list":["post-1535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news-updates","category-sponsored"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=1535"}],"version-history":[{"count":6,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1535\/revisions"}],"predecessor-version":[{"id":2752,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1535\/revisions\/2752"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/1541"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=1535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=1535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=1535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}